Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-13251 | ||
Entity Registrant Name | SLM Corp | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 52-2013874 | ||
Entity Address, Address Line One | 300 Continental Drive | ||
Entity Address, City or Town | Newark, | ||
Entity Address, State or Province | DE | ||
Entity Address, Postal Zip Code | 19713 | ||
City Area Code | 302 | ||
Local Phone Number | 451-0200 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6.4 | ||
Entity Common Stock, Shares Outstanding (in shares) | 279,392,949 | ||
Documents Incorporated by Reference | Portions of the proxy statement relating to the Registrant’s 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001032033 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common stock, par value $.20 per share | ||
Trading Symbol | SLM | ||
Security Exchange Name | NASDAQ | ||
Noncumulative Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Floating Rate Non-Cumulative Preferred Stock, Series B, par value $.20 per share | ||
Trading Symbol | SLMBP | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | McLean, Virginia |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 4,334,603 | $ 4,455,292 |
Investments | ||
Trading investments at fair value (cost of $29,049 and $12,551, respectively ) | 37,465 | 16,923 |
Available-for-sale investments | 2,517,956 | 1,996,634 |
Other investments | 140,037 | 80,794 |
Total investments | 2,695,458 | 2,094,351 |
Loans held for investment (net of allowance for losses of $1,165,335 and $1,361,723, respectively) | 20,341,283 | 19,183,143 |
Loans held for sale | 0 | 2,885,640 |
Restricted cash | 210,741 | 154,417 |
Other interest-earning assets | 9,655 | 42,874 |
Accrued interest receivable | 1,205,667 | 1,387,305 |
Premises and equipment, net | 150,516 | 154,670 |
Income taxes receivable, net | 239,578 | 374,706 |
Tax indemnification receivable | 8,047 | 18,492 |
Other assets | 26,351 | 19,533 |
Total assets | 29,221,899 | 30,770,423 |
Liabilities | ||
Deposits | 20,828,124 | 22,666,039 |
Long-term borrowings | 5,930,990 | 5,189,217 |
Other liabilities | 313,074 | 352,332 |
Total liabilities | 27,072,188 | 28,207,588 |
Commitments and contingencies | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 432.0 million and 456.7 million shares issued, respectively | 86,403 | 91,346 |
Additional paid-in capital | 1,074,384 | 1,331,247 |
Accumulated other comprehensive loss (net of tax benefit of $(5,707) and $(10,908), respectively) | (17,897) | (34,200) |
Retained earnings | 2,817,134 | 1,722,365 |
Total SLM Corporation stockholders’ equity before treasury stock | 4,211,094 | 3,361,828 |
Less: Common stock held in treasury at cost: 153.1 million and 81.4 million shares, respectively | (2,061,383) | (798,993) |
Total equity | 2,149,711 | 2,562,835 |
Total liabilities and equity | 29,221,899 | 30,770,423 |
Series B Preferred Stock | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||
Series B: 2.5 million and 2.5 million shares issued, respectively, at stated value of $100 per share | $ 251,070 | $ 251,070 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Trading investments, cost | $ 29,049 | $ 12,551 |
Available-forsale investments at fair value, cost | 2,535,568 | 1,986,957 |
Allowance for credit losses | $ 1,165,335 | $ 1,361,723 |
Preferred stock, par value/stated value (in dollars per share) | $ 0.20 | $ 0.20 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued (in shares) | 432,000,000 | 456,700,000 |
Accumulated other comprehensive income, tax | $ 5,707 | $ (10,908) |
Common stock held in treasury (in shares) | 153,100,000 | 81,400,000 |
Series B Preferred Stock | ||
Preferred stock, par value/stated value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 2,500,000 | 2,500,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income: | |||
Loans | $ 1,756,945 | $ 1,989,004 | $ 2,249,169 |
Investments | 13,859 | 11,743 | 7,607 |
Cash and cash equivalents | 6,040 | 20,913 | 74,256 |
Total interest income | 1,776,844 | 2,021,660 | 2,331,032 |
Interest expense: | |||
Deposits | 225,370 | 393,194 | 547,746 |
Interest expense on short-term borrowings | 18,945 | 14,459 | 6,193 |
Interest expense on long-term borrowings | 137,763 | 134,014 | 153,778 |
Total interest expense | 382,078 | 541,667 | 707,717 |
Net interest income | 1,394,766 | 1,479,993 | 1,623,315 |
Less: provisions for credit losses | (32,957) | 93,133 | 354,249 |
Net interest income after provisions for credit losses | 1,427,723 | 1,386,860 | 1,269,066 |
Non-interest income: | |||
Gains on sales of loans, net | 548,315 | 238,315 | 0 |
Gains on derivatives and hedging activities, net | 144 | 49,544 | 17,825 |
Other income | 83,990 | 43,590 | 31,102 |
Total non-interest income | 632,449 | 331,449 | 48,927 |
Operating expenses | |||
Compensation and benefits | 258,321 | 282,497 | 278,229 |
FDIC assessment fees | 23,368 | 21,956 | 32,852 |
Other operating expenses | 236,964 | 233,635 | 263,172 |
Total operating expenses | 518,653 | 538,088 | 574,253 |
Restructuring expenses | 1,255 | 26,215 | 0 |
Total non-interest expenses | 519,908 | 564,303 | 574,253 |
Income before income tax expense | 1,540,264 | 1,154,006 | 743,740 |
Income tax expense | 379,751 | 273,316 | 165,464 |
Net income | 1,160,513 | 880,690 | 578,276 |
Preferred stock dividends | 4,736 | 9,734 | 16,837 |
Net income attributable to SLM Corporation common stock | $ 1,155,777 | $ 870,956 | $ 561,439 |
Basic earnings per common share (in usd per share) | $ 3.67 | $ 2.27 | $ 1.31 |
Average common shares outstanding (in shares) | 314,993 | 383,705 | 427,292 |
Diluted earnings per common share (in usd per share) | $ 3.61 | $ 2.25 | $ 1.30 |
Average common and common equivalent shares outstanding (in shares) | 319,912 | 387,195 | 430,674 |
Declared dividends per common share (in usd per share) | $ 0.20 | $ 0.12 | $ 0.12 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,160,513 | $ 880,690 | $ 578,276 |
Other comprehensive income (loss): | |||
Unrealized gains (losses) on investments | (26,606) | 7,764 | 7,993 |
Unrealized gains (losses) on cash flow hedges | 48,111 | (36,511) | (38,414) |
Total unrealized gains (losses) | 21,505 | (28,747) | (30,421) |
Income tax (expense) benefit | (5,202) | 6,914 | 7,431 |
Other comprehensive income (loss), net of tax (expense) benefit | 16,303 | (21,833) | (22,990) |
Total comprehensive income | $ 1,176,816 | $ 858,857 | $ 555,286 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Total Equity | Total EquityCumulative Effect, Period of Adoption, Adjustment | Total EquityCumulative Effect, Period Of Adoption, Adjusted Balance | Total EquitySeries B Preferred Stock | Preferred Stock | Preferred StockCumulative Effect, Period Of Adoption, Adjusted Balance | Preferred StockSeries B Preferred Stock | Common Stock | Common StockCumulative Effect, Period Of Adoption, Adjusted Balance | Treasury Stock | Treasury StockCumulative Effect, Period Of Adoption, Adjusted Balance | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period Of Adoption, Adjusted Balance | Additional Paid-In CapitalSeries B Preferred Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period Of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period Of Adoption, Adjusted Balance | Retained EarningsSeries B Preferred Stock |
Beginning balance, shares issued (in shares) at Dec. 31, 2018 | 4,000,000 | 449,856,221 | |||||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 435,681,488 | (14,174,733) | |||||||||||||||||||
Beginning balance at Dec. 31, 2018 | $ 2,972,656 | $ 400,000 | $ 89,972 | $ (142,591) | $ 1,274,635 | $ 10,623 | $ 1,340,017 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | $ 578,276 | 578,276 | 578,276 | ||||||||||||||||||
Other comprehensive loss, net of tax | (22,990) | (22,990) | (22,990) | ||||||||||||||||||
Total comprehensive income | $ 555,286 | 555,286 | |||||||||||||||||||
Cash dividends: | |||||||||||||||||||||
Common stock | (51,114) | (51,114) | |||||||||||||||||||
Preferred stock | $ (16,837) | $ (16,837) | |||||||||||||||||||
Repurchase of Preferred Stock, series B (in shares) | (1,369,630) | ||||||||||||||||||||
Dividend equivalent units related to employee stock-based compensation plans | 0 | 5 | (5) | ||||||||||||||||||
Issuance of common shares (in shares) | 3,743,705 | 3,743,705 | |||||||||||||||||||
Issuance of common shares | 3,375 | $ 748 | 2,627 | ||||||||||||||||||
Stock-based compensation expense | 30,538 | 30,363 | 175 | ||||||||||||||||||
Common stock repurchased (in shares) | (16,962,199) | (16,962,199) | (16,962,199) | ||||||||||||||||||
Common stock repurchased | (167,201) | $ (167,201) | |||||||||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,369,630) | (1,369,630) | |||||||||||||||||||
Shares repurchased related to employee stock-based compensation plans | (14,867) | $ (14,867) | |||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 421,093,364 | 421,093,364 | (32,506,562) | (32,506,562) | |||||||||||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2019 | 4,000,000 | 4,000,000 | 453,599,926 | 453,599,926 | |||||||||||||||||
Ending balance at Dec. 31, 2019 | 3,311,836 | $ (952,639) | $ 2,359,197 | $ 400,000 | $ 400,000 | $ 90,720 | $ 90,720 | $ (324,659) | $ (324,659) | 1,307,630 | $ 1,307,630 | (12,367) | $ (12,367) | 1,850,512 | $ (952,639) | $ 897,873 | |||||
Cash dividends: | |||||||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 | ||||||||||||||||||||
Net income | $ 880,690 | 880,690 | 880,690 | ||||||||||||||||||
Other comprehensive loss, net of tax | (21,833) | (21,833) | (21,833) | ||||||||||||||||||
Total comprehensive income | $ 858,857 | 858,857 | |||||||||||||||||||
Common stock | (46,351) | (46,351) | |||||||||||||||||||
Preferred stock | (9,734) | (9,734) | |||||||||||||||||||
Repurchase of Preferred Stock, series B (in shares) | (1,197,843) | (1,489,304) | |||||||||||||||||||
Repurchase of Preferred Stock, series B | (68,055) | $ (148,930) | $ 80,875 | ||||||||||||||||||
Dividend equivalent units related to employee stock-based compensation plans | (10) | 271 | (281) | ||||||||||||||||||
Issuance of common shares (in shares) | 3,129,325 | 3,129,325 | |||||||||||||||||||
Issuance of common shares | 3,602 | $ 626 | 2,976 | ||||||||||||||||||
Stock-based compensation expense | 36,586 | 36,418 | 168 | ||||||||||||||||||
Common stock repurchased (in shares) | (47,736,847) | (47,736,847) | (47,736,847) | ||||||||||||||||||
Common stock repurchased | (558,167) | $ (461,244) | (96,923) | ||||||||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,197,843) | (1,197,843) | |||||||||||||||||||
Shares repurchased related to employee stock-based compensation plans | (13,090) | $ (13,090) | |||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 375,287,999 | (81,441,252) | |||||||||||||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2020 | 2,510,696 | 456,729,251 | |||||||||||||||||||
Ending balance at Dec. 31, 2020 | $ 2,562,835 | 2,562,835 | $ 251,070 | $ 91,346 | $ (798,993) | 1,331,247 | (34,200) | 1,722,365 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||
Net income | 1,160,513 | 1,160,513 | 1,160,513 | ||||||||||||||||||
Other comprehensive loss, net of tax | 16,303 | 16,303 | 16,303 | ||||||||||||||||||
Total comprehensive income | $ 1,176,816 | 1,176,816 | |||||||||||||||||||
Cash dividends: | |||||||||||||||||||||
Common stock | (60,462) | (60,462) | |||||||||||||||||||
Preferred stock | $ (4,736) | $ (4,736) | |||||||||||||||||||
Repurchase of Preferred Stock, series B (in shares) | (1,368,942) | ||||||||||||||||||||
Dividend equivalent units related to employee stock-based compensation plans | (16) | 530 | (546) | ||||||||||||||||||
Issuance of common shares (in shares) | 3,786,581 | 3,786,581 | |||||||||||||||||||
Issuance of common shares | 4,891 | $ 757 | 4,134 | ||||||||||||||||||
Stock-based compensation expense | 30,649 | 30,649 | |||||||||||||||||||
Common stock repurchased and cancelled (in shares) | (28,502,460) | ||||||||||||||||||||
Common stock repurchased and cancelled | (472,560) | $ (5,700) | (466,860) | ||||||||||||||||||
Common stock repurchased (in shares) | (98,748,905) | (70,246,445) | (70,246,445) | ||||||||||||||||||
Common stock repurchased | (1,067,583) | $ (1,242,267) | 174,684 | ||||||||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,368,942) | (1,368,942) | |||||||||||||||||||
Shares repurchased related to employee stock-based compensation plans | (20,123) | $ (20,123) | |||||||||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 278,956,733 | (153,056,639) | |||||||||||||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2021 | 2,510,696 | 432,013,372 | |||||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 2,149,711 | $ 2,149,711 | $ 251,070 | $ 86,403 | $ (2,061,383) | $ 1,074,384 | $ (17,897) | $ 2,817,134 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Declared dividends per common share attributable to SLM Corporation (in dollars per share) | $ 0.20 | $ 0.12 | $ 0.12 |
Series B Preferred Stock | |||
Preferred stock dividend rate (in dollars per share) | $ 1.89 | $ 2.56 | $ 4.21 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Operating activities | |||
Net income | $ 1,160,513 | $ 880,690 | $ 578,276 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Provisions for credit losses | (32,957) | 93,133 | 354,249 |
Deferred tax provision (benefit) | 55,372 | 72,776 | (9,714) |
Amortization of brokered deposit placement fee | 15,516 | 19,401 | 17,788 |
Amortization of Secured Borrowing Facility upfront fee | 2,415 | 2,976 | 1,117 |
Amortization of deferred loan origination costs and loan premium/(discounts), net | 16,103 | 24,152 | 13,049 |
Net amortization of discount on investments | 7,310 | 6,350 | 2,069 |
Reduction of tax indemnification receivable | 10,445 | 9,066 | 11,649 |
Depreciation of premises and equipment | 16,043 | 15,066 | 14,669 |
Stock-based compensation expense | 30,649 | 36,464 | 30,600 |
Unrealized (gains) losses on derivative and hedging activities, net | 23,249 | (10,333) | (19,046) |
Gains on sale of loans, net | (548,315) | (238,315) | 0 |
Gain on sale of Upromise subsidiary, net | 0 | (11,331) | 0 |
Other adjustments to net income, net | (23,410) | 8,810 | 3,724 |
Changes in operating assets and liabilities: | |||
Increase in accrued interest receivable | (743,757) | (876,703) | (963,885) |
Increase in non-marketable securities | (9,969) | (839) | (10,700) |
Decrease (increase) in other interest-earning assets | 33,219 | 9,690 | (25,407) |
Increase in other assets | (123,268) | (50,454) | (3,091) |
Increase (decrease) in income tax payable, net | 72,191 | (45,611) | (30,191) |
(Decrease) increase in accrued interest payable | (13,672) | (14,602) | 13,817 |
Decrease in Upromise member accounts due to sale | 0 | (193,840) | 0 |
Increase in other liabilities | 2,801 | 80,785 | 5,386 |
Total adjustments | (1,210,035) | (1,063,359) | (593,917) |
Total net cash used in operating activities | (49,522) | (182,669) | (15,641) |
Investing activities | |||
Loans acquired and originated | (5,511,845) | (5,378,283) | (6,138,105) |
Net proceeds from sales of loans held for investment | 4,642,505 | 3,875,737 | 0 |
Proceeds from claim payments | 19,386 | 28,709 | 42,869 |
Net decrease in loans held for investment | 3,845,990 | 3,832,991 | 4,094,021 |
Purchases of available-for-sale securities | (1,257,129) | (2,083,261) | (356,414) |
Proceeds from sales and maturities of available-for-sale securities | 865,766 | 654,515 | 50,915 |
Proceeds from the sale of Upromise subsidiary, net | 0 | 16,922 | 0 |
Total net cash provided by (used in) investing activities | 2,604,673 | 947,330 | (2,306,714) |
Financing activities | |||
Brokered deposit placement fee | (12,565) | (4,810) | (27,978) |
Net (decrease) increase in certificates of deposit | (2,130,728) | (2,428,094) | 4,349,741 |
Net increase in other deposits | 393,306 | 704,382 | 923,793 |
Borrowings collateralized by loans in securitization trusts - issued | 1,585,125 | 1,338,641 | 1,105,594 |
Borrowings collateralized by loans in securitization trusts - repaid | (1,143,738) | (1,003,327) | (1,042,892) |
Borrowings under Secured Borrowing Facility | 0 | 0 | 297,800 |
Repayment of borrowings under Secured Borrowing Facility | 0 | (289,230) | (8,570) |
Fees paid - Secured Borrowing Facility | (2,846) | (3,256) | (1,116) |
Unsecured debt issued | 492,135 | 495,000 | 0 |
Unsecured debt repaid | (202,784) | 0 | 0 |
Preferred stock dividends paid | (4,736) | (9,734) | (16,837) |
Repurchase of Series B Preferred Stock | 0 | (68,055) | 0 |
Common stock dividends paid | (60,462) | (46,351) | (51,114) |
Common stock repurchased | (1,530,683) | (558,167) | (167,201) |
Net cash (used in) provided by financing activities | (2,619,516) | (1,875,712) | 5,361,220 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (64,365) | (1,111,051) | 3,038,865 |
Cash, cash equivalents and restricted cash at beginning of year | 4,609,709 | 5,720,760 | 2,681,895 |
Cash, cash equivalents and restricted cash at end of year | 4,545,344 | 4,609,709 | 5,720,760 |
Cash disbursements made for: | |||
Interest | 359,684 | 517,444 | 666,018 |
Income taxes paid | 261,473 | 248,122 | 201,792 |
Income taxes refunded | (8,614) | (6,219) | (853) |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | |||
Cash and cash equivalents | 4,334,603 | 4,455,292 | 5,563,877 |
Restricted cash | 210,741 | 154,417 | 156,883 |
Total cash, cash equivalents and restricted cash | 4,545,344 | 4,609,709 | 5,720,760 |
Collateralized Securities | |||
Financing activities | |||
Issuance costs for collateralized borrowings and unsecured debt offering | 0 | (1,402) | 0 |
Unsecured Debt | |||
Financing activities | |||
Issuance costs for collateralized borrowings and unsecured debt offering | $ (1,540) | $ (1,309) | $ 0 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” “our,” or “us”) is a holding company that operates through a number of subsidiaries and is the premier brand for college and continuous education. While the Sallie Mae name has existed for more than 40 years, the company that operates as Sallie Mae today, SLM Corporation, was formed in late 2013 and includes its wholly-owned subsidiary, Sallie Mae Bank, an industrial bank established in 2005 (the “Bank”). On April 30, 2014, we legally separated (the “Spin-Off”) from another public company that is now named Navient Corporation (“Navient”), which is in the education loan management, servicing, asset recovery, and consolidation loan business. We are a consumer banking business and did not retain any assets or liabilities generated prior to the Spin-Off other than those explicitly retained by us. We sometimes refer to the company that existed prior to the Spin-Off as “pre-Spin-Off SLM.” The Bank was formed in 2005 to fund and originate Private Education Loans (as hereinafter defined) on behalf of pre-Spin-Off SLM. While the Bank first originated Private Education Loans in February 2006, pre-Spin-Off SLM continued to purchase a portion of its Private Education Loans from third-party lending partners through mid-2009. With some minor exceptions, the Bank became the sole originator of Private Education Loans for pre-Spin-Off SLM beginning with the 2009-2010 academic year, the first academic year following the launch of the Bank’s Smart Option Student Loan program in mid-2009. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates and Assumptions The financial reporting and accounting policies of SLM Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Key accounting policies that include significant judgments and estimates include the valuation of allowance for credit losses. Consolidation The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. Cash and Cash Equivalents Cash and cash equivalents include cash held in the Federal Reserve Bank of San Francisco (the “FRB”) and commercial bank accounts, and other short-term liquid instruments with original maturities of three months or less. Fees associated with investing cash and cash equivalents are amortized into interest income using the effective interest rate method. Trading Investments We periodically sell Private Education Loans through securitization transactions where we are required to retain a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitizations). We classified those vertical risk retention interests related to the transactions as available-for-sale investments, except for the interest in the residual classes, which we classified as trading investments recorded at fair value with changes recorded through earnings. Available-for-Sale Investments Investments consisted of mortgage-backed securities, Utah Housing Corporation bonds, and U.S. government-sponsored enterprises and Treasury securities. We record our investment purchases and sales on a trade date basis. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Our investments are classified as available-for-sale and reported at fair value. Unrealized gains or losses on available-for-sale investments are recorded in equity and reported as a component of other comprehensive income (loss), net of applicable income taxes. We assess unrealized losses on available-for-sale debt securities that we have the ability and intent to hold for a period of time sufficient to recover the amortized cost of the security, for the purpose of determining credit impairment. If any credit impairment exists, an allowance for losses is established for the amount of the unrealized loss that is determined to be credit-related. Other Investments We hold investments in non-marketable securities and account for these investments at cost, less impairment, plus or minus observable price changes of identical or similar securities of the same issuer. We also invest in affordable housing projects that qualify for the low income housing tax credit (“LIHTC”), which is designed to promote private development of low income housing. These investments generate a return mostly through realization of federal tax credits. Loans Held for Investment Loans, consisting of Private Education Loans, FFELP Loans, and our suite of credit cards (“Credit Cards”) that we have the ability and intent to hold for the foreseeable future, are classified as held for investment, and are carried at amortized cost. Amortized cost includes the unamortized premiums, discounts, and capitalized origination costs and fees, all of which are amortized to interest income as discussed under “Loan Interest Income.” Loans which are held for investment are reported net of an allowance for credit losses. Loans Held for Sale Any loans we have not classified as held for investment are classified as held-for-sale and are carried at the lower of cost or fair value. Loans are classified as held-for-sale when we have the intent and ability to sell such loans. Loans which are held-for-sale do not have the associated premium, discount, and capitalized origination costs and fees amortized into interest income. When a decision has been made to sell loans not previously classified as held for sale, such loans are transferred into the held-for-sale classification and carried at the lower of amortized cost basis (which excludes any allowance for credit losses) or fair value. At the time of the transfer to the held-for-sale classification, any amount by which the amortized cost basis exceeds fair value is accounted for as a valuation allowance. In addition, once a loan is classified as held-for-sale, we reverse any allowance for loan loss applicable to these loans. As market conditions permit, we may sell or securitize loans as a source of financing for other loans. Due to varying structuring terms, certain transactions may qualify for sale treatment while others do not qualify for sale treatment and are recorded as financings. All of our education loans are initially categorized as held for investment. It is only when we have selected the loans to sell or securitize and the transaction qualifies as a sale that we transfer the loans into the held-for-sale classification and carry them at the lower of cost or fair value. If we anticipate recognizing a gain related to the impending securitization or sale, then the fair value of the loans is higher than their respective cost basis and no valuation allowance is recorded. Restricted Cash Restricted cash primarily includes amounts held in student loan securitization trusts and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the trust assets and when principal and interest is paid on trust liabilities. Allowance for Credit Losses Adoption of CECL On January 1, 2020, we adopted the Financial Accounting Standards Board’s (“FASB’s”) Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”). Under this guidance, for all loans carried at amortized cost, upon loan origination we are required to measure our allowance for credit losses based on our estimate of all current expected credit losses over the remaining contractual term of the assets. Updates to that estimate each period are recorded through provision expense. The estimate of loan losses must be based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU does not mandate the use of any specific method for estimating credit loss, permitting companies to use judgment in selecting the approach that is most appropriate in their circumstances. Adoption of the standard had a material impact on how we record and report our financial condition and results of operations, and on regulatory capital. The following table illustrates the impact of the cumulative effect adjustment made upon adoption of CECL on January 1, 2020: January 1, 2020 (Dollars in thousands) As reported under CECL Pre-CECL Adoption Impact of CECL Adoption Assets: Allowance for credit losses: Private Education Loans $ 1,435,130 $ 374,300 $ 1,060,830 FFELP Loans 4,485 1,633 2,852 Personal Loans 145,060 65,877 79,183 Credit Cards 290 102 188 Total $ 1,584,965 $ 441,912 $ 1,143,053 Deferred tax asset $ 415,540 $ 109,369 $ 306,171 Liabilities: Allowance for credit losses: Off-balance sheet exposures $ 118,239 $ 2,481 $ 115,758 Equity: Retained Earnings $ 897,873 $ 1,850,512 $ (952,639) This transition adjustment shown above is inclusive of qualitative adjustments incorporated into our CECL allowance as necessary, to address any limitations in the models used. Under regulations issued by the FDIC and other federal banking agencies, banking organizations that adopt CECL during the 2020 calendar year, including the Bank, may elect to delay for two years, and then phase in over the following three years, the effects on regulatory capital of CECL relative to the incurred loss methodology. The Bank has elected to use this option. Therefore, the regulatory capital impact of the Bank’s transition adjustments recorded on January 1, 2020 from the adoption of CECL, and 25 percent of the ongoing impact of CECL on the Bank’s allowance for credit losses, retained earnings, and average total consolidated assets, each as reported for regulatory capital purposes (collectively, the “adjusted transition amounts”), were deferred for the two-year period ending January 1, 2022. From January 1, 2022 to January 1, 2025, the adjusted transition amounts will be phased in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. For additional information, see Note 18, “Regulatory Capital.” Allowance for Credit Losses - 2021 and 2020 We maintain an allowance for credit losses for the lifetime expected credit losses on loans in our portfolios, as well as for future loan commitments, at the reporting date. In determining the lifetime expected credit losses on our Private Education Loan portfolio loan segments, we use a discounted cash flow model. This method requires us to project future principal and interest cash flows on our loans in those portfolios. To estimate the future expected cash flows, we use a vintage-based model that considers life of loan loss expectations, prepayments (both voluntary and involuntary), defaults, recoveries, and any other adjustments deemed necessary, to determine the adequacy of the allowance at each balance sheet date. These cash flows are discounted at the loan’s effective interest rate to calculate the present value of those cash flows. Management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The difference between the present value of those cash flows and the amortized cost basis of the underlying loans is the allowance for credit losses. Entities that measure credit losses based on the present value of expected future cash flows are permitted to report the entire change in present value as credit loss expense, but may alternatively report the change in present value due to the passage of time as interest income. We have elected to report the entire change in present value as credit loss expense. In determining the loss rates used for the vintage-based approach, we start with our historical loss rates, stratify the loans within each vintage, and then adjust the loss rates based upon economic factors forecasted over a reasonable and supportable forecast period. The reasonable and supportable forecast period is meant to represent the period in which we believe we can estimate the impact of forecasted economic factors in our expected losses. At the end of the reasonable and supportable forecast period, we immediately revert our forecast of expected losses to our historical averages. We use a two-year reasonable and supportable forecast period, although this period is subject to change as our view evolves on our ability to reasonably forecast economic conditions to estimate future losses. In estimating our current expected credit losses, we use a combination of expected economic scenarios coupled with our historical experience to derive a base case adjusted for any qualitative factors (as described below). We also develop an adverse and favorable economic scenario. At each reporting date, we determine the appropriate weighting of these alternate scenarios based upon the current economic conditions and our view of the risks of alternate outcomes. This weighting of expectations is used in calculating our current expected credit losses recorded each period. In estimating recoveries, we use both estimates of what we would receive from the sale of defaulted loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. We use historical experience and economic forecasts to estimate future prepayment speeds. As with our loss forecasts, at the end of the two-year reasonable and supportable forecast for prepayments, we immediately revert to our historical long-term prepayment rates. In addition to the above modeling approach, we also take certain other qualitative factors into consideration when calculating the allowance for credit losses. These qualitative factors include, but are not limited to, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not already included in the analysis, and the effect of other external factors such as legal and regulatory requirements on the level of estimated current expected credit losses. The evaluation of the allowance for credit losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. If actual future performance in delinquency, charge-offs, and recoveries is significantly different than estimated, or management assumptions or practices were to change, this could materially affect the estimate of the allowance for credit losses, the timing of when losses are recognized, and the related provision for credit losses on our consolidated statements of income. When calculating our allowance for credit losses and liability for unfunded commitments, we incorporate several inputs that are subject to change period to period. These include, but are not limited to, CECL model inputs and any overlays deemed necessary by management. The most impactful CECL model inputs include: • Economic forecasts; • Weighting of economic forecasts; • Prepayment speeds; and • Recovery rates. Management overlays can encompass a broad array of factors not captured by model inputs, including but not limited to, changes in servicing policies, collection administrative practices, state law changes that could impact servicing and collection practices, and observed differences between forecasted and actual results. Below we describe in further detail our policies and procedures for the allowance for credit losses as they relate to our Private Education Loan, Credit Card, and FFELP Loan portfolios. During the third quarter of 2020, we sold our entire Personal Loan portfolio. Allowance for Private Education Loan Losses - 2021 and 2020 In addition to the key assumptions/estimates described above, some estimates are unique to our Private Education Loan portfolio. Estimates are made on our Private Education Loans regarding when each borrower will separate from school. The cash flow timing of when a borrower will begin making full principal and interest payments is dependent upon when the student either graduates or leaves school. These dates can change based upon many factors. We receive information regarding projected graduation dates from a third-party clearinghouse. The separation from school date is updated quarterly based on updated information received from the clearinghouse. Additionally, when we have a contractual obligation to fund a loan or a portion of a loan at a later date, we make an estimate regarding the percentage of this obligation that will be funded. This estimate is based on historical experience. For unfunded commitments, we recognize the related life of loan allowance as a liability. Once the loan is funded, that liability transfers to the allowance for Private Education Loan losses. Key Credit Quality Indicators - Private Education Loans - 2021 and 2020 We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit score at original approval and periodically refreshed/updated credit scores through the loan’s term, existence of a cosigner, loan status, and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for credit losses. Credit scores are an indicator of the creditworthiness of borrowers and the higher the credit scores the more likely it is the borrowers will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than a current loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default as well. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for credit losses on a quarterly basis. We collect on defaulted loans through a mix of in-house collectors, third-party collectors, and sales to third-parties. For December 31, 2021 and 2020, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted loans to estimate the timing and amount of future recoveries on charged-off loans. Private Education Loans generally do not require borrowers to begin principal and interest repayment until at least six months after the borrowers have graduated or otherwise separated from school. Consequently, the loss estimates for these loans are generally low while the borrower is in school and then increase upon the end of the grace period after separation from school. At both December 31, 2021 and 2020, 24 percent of the principal balance of the Private Education Loan portfolio was related to borrowers who were then in an in-school (fully deferred), grace, or other deferment status and not required to make payments. Our collection policies for Private Education Loans allow for periods of nonpayment for certain borrowers requesting an extended grace period upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance and is considered in estimating the allowance for credit losses. As part of concluding on the adequacy of the allowance for credit losses for Private Education Loans, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance as a percentage of ending total loans, delinquency percentages, and forbearance percentages. We consider a Private Education Loan to be delinquent if the borrower has not made a required payment prior to the 31st day after such payment was contractually due. Troubled Debt Restructurings (“TDRs”) - 2021 and 2020 In estimating the expected defaults for our Private Education Loans that are considered TDRs, we follow the same discounted cash flow process described above but use the historical loss rates related to past TDR loans. The appropriate gross loss rates are determined for each individual loan by evaluating loan maturity, risk characteristics, and macroeconomic conditions. The allowance for our TDR portfolio is included in our overall allowance for Private Education Loans. Our TDR portfolio is comprised mostly of loans with interest rate reductions and loans with forbearance usage greater than three months, as further described below. We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations, achieve better student outcomes, and increase the collectability of the loans. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. When we give a borrower facing financial difficulty an interest rate reduction, we temporarily reduce the rate (currently to 4.0 percent) for a two-year period and, in the vast majority of cases, permanently extend the final maturity of the loan. The combination of these two loan term changes helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. We classify a loan as a TDR due to forbearance using a two-step process. The first step is to identify a loan that was in full principal and interest repayment status and received more than three months of forbearance in a 24-month period; however, during the first nine months after a loan had entered full principal and interest repayment status, we do not count up to the first six months of forbearance received during that period against the three-month policy limit. The second step is to evaluate the creditworthiness of the loan by examining its most recent refreshed FICO score. Loans that have met the criteria in the first test and have a FICO score above a certain threshold (based on the most recent quarterly FICO score refresh) will not be classified as TDRs. Loans that have met the criteria in the first test and have a FICO score under the threshold (based on the most recent quarterly FICO score refresh) will be classified as TDRs. A loan also becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate reduction is temporary). Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. About half our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. As of both December 31, 2021 and 2020, approximately 47 percent of TDRs were classified as such due to their forbearance status. For additional information, see Note 7, “Allowance for Credit Losses.” On March 27, 2020, then President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which, among other things, allows us to (i) elect to suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as TDRs, and (ii) suspend any determination of a loan modified as a result of the effects of COVID-19 as being a TDR, including impairment for accounting purposes. Furthermore, on December 27, 2020, the Consolidated Appropriations Act, 2021 (the “CAA”) was signed into law. The CAA provides for additional COVID-19 focused relief and extends certain provisions of the CARES Act. We have elected to suspend TDR accounting for both forbearance and interest rate modifications of loans that occur as a result of COVID-19 for the applicable period of the CARES Act and CAA relief. The relief from TDR guidance applies to modifications of loans that were not more than 30 days past due as of December 31, 2019, and that occur during the period beginning on March 1, 2020, and ending on the earlier of (i) sixty days after the date on which the national emergency related to the COVID-19 outbreak is terminated, or (ii) January 1, 2022. We are continuing to apply TDR accounting to those loans that were more than 30 days past due as of December 31, 2019 and were subsequently modified. Off-Balance Sheet Exposure for Contractual Loan Commitments - 2021 and 2020 When we approve a Private Education Loan at the beginning of an academic year, that approval may cover the borrowing for the entire academic year. As such, we do not always disburse the full amount of the loan at the time of such approval, but instead have a commitment to fund a portion of the loan at a later date (usually the start of the second semester or subsequent trimesters). We estimate expected credit losses over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. The discounted cash flow approach described above includes expected future contractual disbursements. The portion of the allowance for credit losses related to future disbursements is shown as a liability on the face of the balance sheet, and related provision for credit losses is reflected on the income statement. Uncollectible Interest - 2021 and 2020 The majority of the total accrued interest receivable on our Private Education Loan portfolio represents accrued interest on deferred loans where no payments are due while the borrower is in school and on fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accrued on the loan in that month. The accrued interest on these loans will be capitalized and increase the unpaid principal balance of the loans when the borrower exits the grace period after separation from school. The discounted cash flow approach described above considers both the collectability of principal as well as this portion of accrued interest that is expected to capitalize to the balance of the loan. Therefore, the allowance for this portion of accrued interest balance is included in our allowance for credit losses. The discounted cash flow approach does not consider interest accrued on loans that are in a full principal and interest repayment status or in interest-only repayment status. We separately capture the amount of expected uncollectible interest associated with these loans using historical experience to estimate the uncollectible interest for the next four months at each period-end date. This amount is recorded as a reduction of interest income. Accrued interest receivable is separately disclosed on the face of the balance sheet. Allowance for Credit Card Loans - 2021 and 2020 We use the gross loss approach when estimating the allowance for credit losses for our Credit Card portfolio. Because our Credit Card portfolio is new and we do not have sufficient historical loss experience, we use estimated loss rates reported by other financial institutions to estimate our allowance for credit losses for Credit Cards, net of expected recoveries. In addition, we use a model that utilizes purchased credit card information with risk characteristics similar to those of our own portfolio as a challenger model. We then consider any qualitative factors that may change our future expectations of losses. As all of our Credit Card loans are unconditionally cancelable by us, the issuer, we do not record any estimate of credit losses for unused portions of our Credit Card commitments. Allowance for FFELP Loan Losses - 2021 and 2020 FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. Because we bear a maximum of three percent loss exposure due to this federal guarantee, our allowance for credit losses for FFELP Loans and related periodic provision expense are relatively small. We use the gross loss approach when estimating the allowance for credit losses for the unguaranteed portion of our FFELP Loans. We maintain an allowance for credit losses for our FFELP Loans at a level sufficient to cover lifetime expected credit losses. The allowance for FFELP Loan losses uses historical experience of customer default behavior. We apply the default rate projections, net of applicable risk sharing, to our FFELP Loans for the current period to perform our quantitative calculation. Once the quantitative calculation is performed, we review the adequacy of the allowance for credit losses and determine if qualitative adjustments need to be considered. Allowance for Credit Losses - 2019 Prior to January 1, 2020, we maintained an allowance for credit losses at an amount sufficient to absorb probable losses incurred in our portfolios, as well as regarding future loan commitments, at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. We considered a loan to be impaired when, based on current information, a loss had been incurred and it was probable that we would not receive all contractual amounts due. When making our assessment as to whether a loan was impaired, we also took into account more than insignificant delays in payment. We generally evaluated impaired loans on an aggregate basis by grouping similar loans. We analyzed our portfolios to determine the effects that the various stages of delinquency and forbearance had on borrower default behavior and ultimate charge off. We estimated the allowance for credit losses for our loan portfolios using a roll rate analysis of delinquent and current accounts. A “roll rate analysis” is a technique used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. We also took into account the current and future economic environment and certain other qualitative factors when calculating the allowance for credit losses. The evaluation of the allowance for credit losses is inherently subjective, as it required material estimates that may be susceptible to significant changes. Our default estimates were based on a loss emergence period of one year for Private Education Loans, Personal Loans, and Credit Cards and two years for FFELP Loans. A loss emergence period represents the expected period between the first occurrence of an event likely to cause a loss on a loan and the date the loan is expected to be charged off, taking into consideration account management practices that affect the timing of a loss, such as the usage of forbearance. The loss emergence period underlying the allowance for credit losses was subject to a number of assumptions. If actual future performance in delinquency, charge-offs, and recoveries was significantly different than estimated, or account management assumptions or practices were to change, this could materially affect the estimate of the allowance for credit losses, the timing of when losses were recognized, and the related provision for credit losses on our consolidated statements of income. We utilized various models to determine an appropriate allowance for credit losses. Changes to model inputs were made as deemed necessary. The models were reviewed and validated periodically. Below we describe in further detail our policies and procedures for the allowance for credit losses in 2019 as they relate to our Private Education Loan, Personal Loan, FFELP Loan portfolios and Credit Cards. Allowance for Private Education Loan Losses - 2019 Prior to January 1, 2020, in determining the allowance for credit losses on our Private Education Loans that are not TDRs, we estimated the principal amount of loans that would default over the next year (one year being the expected period between a loss trigger event and default) using a roll rate model and how much we expected to recover over the same one-year period related to the defaulted amount. The expected defaults less our expected recoveries adjusted for any qualitative factors (discussed below) equaled the allowance related to this portfolio. Our historical experience indicates that, on average, the time between the date that a customer experiences a default causing event (i.e., the loss trigger event) and the date that we charge off the unrecoverable portion of that loan is one year. In estimating both the non-TDR and TDR allowance amounts, we started with historical experience of customer delinquency and default behavior. We made judgments about which historical period to start with and then mad |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents As of December 31, 2021, cash and cash equivalents include cash due from the FRB of $4.3 billion and cash due from depository institutions of $75 million. As of December 31, 2020, cash and cash equivalents include cash due from the FRB of $4.4 billion and cash due from depository institutions of $73 million. As of December 31, 2021 and 2020, we had no outstanding cash equivalents. The FRB Term Deposit Facility program is used to facilitate the conduct of monetary policy by providing a tool that may be used to manage the aggregate quantity of reserve balances held by depository institutions. Under this program, the FRB accepts deposits for a stated maturity at a rate of interest determined via auction. The funds are removed from the accounts of participating institutions for the life of the term deposit. We did not participate in these auctions in 2021 or 2020, resulting in no interest reported. As of December 31, 2021 and 2020, no funds were on deposit with the FRB under this program. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Trading Investments We periodically sell Private Education Loans through securitization transactions where we were required to retain a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitizations). We classify those vertical risk retention interests related to the transactions as available-for-sale investments, except for the interest in the residual classes, which we classify as trading investments recorded at fair value with changes recorded through earnings. At December 31, 2021 and 2020, we had $37 million and $17 million, respectively, classified as trading investments. Available-for-Sale Investments The amortized cost and fair value of securities available for sale are as follows: As of December 31, 2021 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 376,313 $ — $ 1,857 $ (7,073) $ 371,097 Utah Housing Corporation bonds 6,943 — 18 — 6,961 U.S. government-sponsored enterprises and Treasuries 1,958,943 — 603 (11,893) 1,947,653 Other securities 193,369 — 439 (1,563) 192,245 Total $ 2,535,568 $ — $ 2,917 $ (20,529) $ 2,517,956 As of December 31, 2020 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 308,913 $ — $ 6,095 $ (134) $ 314,874 Utah Housing Corporation bonds 12,357 — 210 — 12,567 U.S. government-sponsored enterprises and Treasuries 1,596,890 — 3,395 — 1,600,285 Other securities 68,797 — 462 (351) 68,908 Total $ 1,986,957 $ — $ 10,162 $ (485) $ 1,996,634 (1) Represents the amount of impairment that has resulted from credit-related factors and that was recognized in the consolidated balance sheets (as a credit loss expense on available-for-sale securities). The amount excludes unrealized losses related to non-credit factors. The following table summarizes the amount of gross unrealized losses for our available-for-sale securities and the estimated fair value for securities having gross unrealized loss positions, categorized by length of time the securities have been in an unrealized loss position: Less than 12 months 12 months or more Total As of December 31, Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value 2021: Mortgage-backed securities $ (5,534) $ 261,404 $ (1,540) $ 36,587 $ (7,074) $ 297,991 Utah Housing Corporation bonds — — — — — — U.S. government-sponsored enterprises and Treasuries (11,892) 1,199,367 — — (11,892) 1,199,367 Other securities (1,563) 132,884 — — (1,563) 132,884 Total $ (18,989) $ 1,593,655 $ (1,540) $ 36,587 $ (20,529) $ 1,630,242 2020: Mortgage-backed securities $ (134) $ 46,011 $ — $ — $ (134) $ 46,011 Utah Housing Corporation bonds — — — — — — U.S. government-sponsored enterprises and Treasuries — — — — — — Other securities (351) 30,441 — — (351) 30,441 Total $ (485) $ 76,452 $ — $ — $ (485) $ 76,452 As of December 31, 2021 and 2020, 60 of 180 and 14 of 163, respectively, of our available-for-sale securities were in an unrealized loss position. Impairment For available-for-sale securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell, the security before recovery of its amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through income. For securities in an unrealized loss position that do not meet these criteria, we evaluate whether the decline in fair value has resulted from credit loss or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, as well as any guarantees (e.g., guarantees by the U.S. Government) that may be applicable to the security. If this assessment indicates a credit loss exists, the credit-related portion of the loss is recorded as an allowance for losses on the security. Our investment portfolio contains mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, as well as Utah Housing Corporation bonds. We own these securities to meet our requirements under the Community Reinvestment Act (“CRA”). We also invest in other U.S. government-sponsored enterprise securities issued by the Federal Home Loan Banks, Freddie Mac, and the Federal Farm Credit Bank. Our mortgage-backed securities that were issued under Ginnie Mae programs carry a full faith and credit guarantee from the U.S. Government. The remaining mortgage-backed securities in a net loss position carry a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. Our Treasury and other U.S. government-sponsored enterprise bonds are rated Aaa by Moody’s Investors Service or AA+ by Standard and Poor’s. The decline in value from December 31, 2020 to December 31, 2021 was driven by the current interest rate environment and is not credit related. We have the intent and ability to hold these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. Based on this qualitative analysis, we have determined that no credit impairment exists. We periodically sell Private Education Loans through securitization transactions where we are required to retain a five percent vertical risk retention interest. We classify the non-residual vertical risk retention interests as available-for-sale investments. We have the intent and ability to hold each of these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. We expect to receive all contractual cash flows related to these investments and do not consider a credit impairment to exist. As of December 31, 2021, the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments. As of December 31, 2021 Year of Maturity (Dollars in thousands) Amortized Cost Estimated Fair Value 2022 $ 850,032 $ 850,326 2023 162,617 162,003 2024 398,583 394,941 2026 547,712 540,382 2038 74 79 2039 1,029 1,120 2042 3,183 3,175 2043 5,599 5,797 2044 7,620 7,881 2045 6,764 6,968 2046 10,629 10,818 2047 12,611 12,822 2048 2,961 3,025 2049 19,828 20,458 2050 134,707 131,063 2051 178,250 174,853 2053 141,251 140,260 2054 52,118 51,985 Total $ 2,535,568 $ 2,517,956 Some of the mortgage-backed securities and a portion of the government securities have been pledged to the FRB as collateral against any advances and accrued interest under the Primary Credit lending program sponsored by the FRB. We had $888 million and $815 million par value of securities pledged to this borrowing facility at December 31, 2021 and 2020, respectively, as discussed further in Note 11, “Borrowings.” Other Investments Investments in Non-Marketable Securities We hold investments in non-marketable securities and account for these investments at cost, less impairment, plus or minus observable price changes of identical or similar securities of the same issuer. Changes in market value are recorded through earnings. Because these are non-marketable securities, we use observable price changes of identical or similar securities of the same issuer in determining any changes in the value of the securities. In the second quarter of 2021, we funded an additional investment, as part of a larger equity raise, in an issuer whose equity securities we purchased in the past. We used the valuation associated with the more recent equity raise to adjust the valuation of our previous investments, and, as a result, recorded a gain of $35 million on our earlier equity securities investments. In the third quarter of 2019, we also funded an additional investment and, as a result, recorded a gain of $8 million on our earlier equity securities investments. These gains were recorded in “other income” in the consolidated statements of income in 2021 and 2019. At December 31, 2021 and December 31, 2020, our total investment in the securities of this issuer was $69 million and $26 million, respectively. Low Income Housing Tax Credit Investments We invest in affordable housing projects that qualify for the LIHTC, which is designed to promote private development of low income housing. We recognized $7 million, $6 million, and $6 million of tax credits and other tax benefits associated with investments in affordable housing projects within income tax expense for the years ended December 31, 2021, 2020, and 2019, respectively. The amount of amortization of such investments reported in income tax expense was $6 million, $5 million, and $4 million for the years ended December 31, 2021, 2020, and 2019, respectively. Total carrying value of the LIHTC investments was $68 million at December 31, 2021 and $54 million at December 31, 2020. We are periodically required to provide additional financial support during the investment period. Our liability for these unfunded commitments was $30 million at December 31, 2021 and $19 million at December 31, 2020. |
Loans Held for Investment
Loans Held for Investment | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans Held for Investment Loans held for investment consist of Private Education Loans, FFELP Loans, and Credit Cards. We use “Personal Loans” to mean those unsecured loans to individuals that may be used for non-educational purposes. We sold our entire Personal Loan portfolio in the third quarter of 2020. Our Private Education Loans are made largely to bridge the gap between the cost of higher education and the amount funded through financial aid, government loans, and customers’ resources. Private Education Loans bear the full credit risk of the customer. We manage this risk through risk-performance underwriting strategies and qualified cosigners. Private Education Loans may be fixed-rate or may carry a variable interest rate indexed to LIBOR, the London interbank offered rate, or SOFR, the Secured Overnight Financing Rate. As of December 31, 2021 and 2020, 52.1 percent and 55 percent, respectively, of all of our Private Education Loans were indexed to LIBOR or SOFR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of Private Education Loans in our portfolio are cosigned. We also encourage customers to make payments while in school. FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement on all qualifying claims. In the third quarter of 2020, we sold our entire Personal Loan portfolio, including $697 million of principal and $7 million in accrued interest, which resulted in a $43 million reduction to our provision for credit losses in that period. In 2020, we recognized $238 million gains from the sale of approximately $3.1 billion of our Private Education Loans, including $2.9 billion of principal and $199 million in capitalized interest, to unaffiliated third-parties. In 2021, we recognized $548 million gains from the sale of approximately $4.24 billion of our Private Education Loans, including $3.98 billion of principal and $264 million in capitalized interest, to unaffiliated third-parties. There were VIEs created in the execution of certain of these loan sales; however, based on our consolidation analysis, we are not the primary beneficiary of these VIEs. These transactions qualified for sale treatment and removed the balance of the loans from our balance sheet on the respective settlement dates. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales. For additional information, see Notes to Consolidated Financial Statements, Note 11, “Borrowings - Unconsolidated VIEs.” Loans held for investment are summarized as follows: As of December 31, 2021 2020 Private Education Loans: Fixed-rate $ 9,920,547 $ 8,950,216 Variable-rate 10,796,316 10,779,121 Total Private Education Loans, gross 20,716,863 19,729,337 Deferred origination costs and unamortized premium/ (discount) 67,488 63,475 Allowance for credit losses (1,158,977) (1,355,844) Total Private Education Loans, net 19,625,374 18,436,968 FFELP Loans 695,216 737,593 Deferred origination costs and unamortized premium/ (discount) 1,815 1,993 Allowance for credit losses (4,077) (4,378) Total FFELP Loans, net 692,954 735,208 Credit Cards (fixed-rate) 25,014 12,238 Deferred origination costs and unamortized premium/ (discount) 222 230 Allowance for credit losses (2,281) (1,501) Total Credit Cards, net 22,955 10,967 Loans held for investment, net $ 20,341,283 $ 19,183,143 The estimated weighted average life of education loans in our portfolio was approximately 4.7 years and 5.4 years at December 31, 2021 and 2020, respectively. The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: 2021 2020 2019 Years ended December 31, (dollars in thousands) Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 20,968,061 8.25 % $ 22,426,216 8.42 % $ 22,225,473 9.32 % FFELP Loans 718,186 3.43 757,953 3.76 814,198 4.79 Personal Loans — — 582,552 12.43 1,141,503 12.09 Credit Cards 14,982 4.67 9,390 (6.04) — — Total portfolio $ 21,701,229 $ 23,776,111 $ 24,181,174 Certain Collection Tools — Private Education Loans We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations and achieve better student outcomes, and increase the collectability of the loan. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. Forbearance is granted prospectively for borrowers who are current in their payments and may be granted retroactively for certain delinquent borrowers. Forbearance allows a borrower to not make scheduled payments for a specified period of time. Using forbearance extends the original term of the loan by the term of forbearance taken. Forbearance does not grant any reduction in the total principal or interest repayment obligation. While a loan is in forbearance status, interest continues to accrue and is capitalized (added to principal) at the end of the forbearance. Interest will not capitalize at the end of certain types of forbearance, such as disaster forbearance, however. We grant forbearance through our servicing centers to borrowers who are current in their payments and through our collections centers to certain borrowers who are delinquent. Our forbearance policies and practices vary depending upon whether a borrower is current or delinquent at the time forbearance is requested, generally with stricter payment requirements for delinquent borrowers. We view the population of borrowers that use forbearance positively because the borrowers are either proactively reaching out to us to obtain assistance in managing their obligations or are working with our collections center to bring their loans current. Forbearance may be granted through our servicing centers to customers who are exiting their grace period, and to other customers who are current in their payments, to provide temporary payment relief. In these circumstances, a customer’s loan is placed into a forbearance status in limited monthly increments and is reflected in the forbearance status at month-end during this time. At the end of the forbearance period, the customer will enter repayment status as current and is expected to begin making scheduled monthly payments. Forbearance may also be granted through our collections centers to customers who are delinquent in their payments. If specific payment requirements are met, the forbearance can cure the delinquency and the customer is returned to a current repayment status. Forbearance as a collection tool is used most effectively when applying historical experience and our judgment to a customer’s unique situation. We leverage updated customer information and other decision support tools to best determine who will be granted forbearance based on our expectations as to a customer’s ability and willingness to repay their obligation. This strategy is aimed at assisting customers while mitigating the risks of delinquency and default as well as encouraging resolution of delinquent loans. In most instances, we require one payment, as an indication of a customer’s willingness and ability to repay, before granting forbearance to delinquent borrowers. Historically, we have utilized disaster forbearance to assist borrowers affected by material events, including hurricanes, wildfires, floods, and the COVID-19 pandemic. We typically grant disaster forbearance to affected borrowers in increments of up to three months at a time, but the disaster forbearance granted generally does not apply toward the 12-month forbearance limit described below. During COVID-19, our customers experienced higher levels of financial hardship, which initially led to higher levels of forbearance. We expect for some customers financial hardship may lead to higher levels of delinquencies and defaults in the future, as borrowers who had received disaster forbearance from us re-enter repayment status. Beginning in June 2021, we stopped granting disaster forbearance in response to the COVID-19 pandemic. As borrowers in the various delinquency buckets exit disaster forbearance and begin to enter repayment, we expect elevated levels of losses on this segment of our customers. We expect that, left unabated, this deterioration in delinquency and default rates may persist until economic conditions return to pre-pandemic levels. Management continually monitors our credit administration practices and may periodically modify these practices based upon performance, industry conventions, and/or regulatory feedback. In light of these considerations, we previously announced certain planned changes to our credit administration practices, including the imposition of limits on the number of forbearance months granted consecutively and the number of times certain extended or reduced repayment alternatives may be granted. Prior to implementation of the previously announced changes, borrowers could receive consecutive forbearance grants without intervening payments of principal and interest, if they satisfied all eligibility requirements. We commenced testing in October 2019 for some of the previously announced planned changes on a very small percentage of our total portfolio and in March 2020 we began to expand the number of borrowers who would be subject to the new credit administration practices. However, due to the COVID-19 pandemic, in April 2020 we postponed our efforts so that we could be more flexible in dealing with our customers’ financial hardship. In October 2020, we re-initiated a multi-phased deployment of certain previously announced credit administration practices changes. In October 2021, we announced additional planned changes to our credit administration practices, which we implemented in December 2021. Currently, we generally grant forbearance in increments of one We also offer rate and term modifications to customers experiencing more severe hardship. Currently, we temporarily reduce the contractual interest rate on a loan to 4 percent for a two-year period and, in the vast majority of cases, permanently extend the final maturity date of the loan. As part of demonstrating the ability and willingness to pay, the customer must make three consecutive monthly payments at the reduced payment to qualify for the program. The combination of the rate reduction and maturity extension helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. We currently limit the granting of a permanent extension of the final maturity date of the loan under our loan modification program to one time over the life of the loan. We also currently permit two consecutive rate reductions to 4.0 percent so long as the borrower qualifies and makes three consecutive monthly payments at the reduced payment in connection with each rate reduction. We currently require 12 months of positive payment performance after the interest rate adjusts upward to its previous rate (at the end of the rate reduction periods) before the borrower may be eligible for a forbearance or certain other repayment alternatives, however. We also now limit the number of interest rate reductions to twice over the life of the loan. At December 31, 2021 and December 31, 2020, 7.2 percent and 7.8 percent, respectively, of our loans then currently in full principal and interest repayment status were subject to interest rate reductions made under our rate modification program. While there are limitations to our estimate of the future impact of the various credit administration practices changes we have implemented, absent the effect of any mitigating measures, we expect that the credit administration practices described above, including the changes we implemented in December 2021, will accelerate periodic defaults and could increase periodic defaults in our Private Education Loan held for investment portfolio by approximately 10.1 percent to 16.6 percent. Among the measures that we have implemented and may modify further and expect may partly offset or moderate any acceleration of or increase in defaults will be greater focus on the risk assessment process to ensure borrowers are mapped to the appropriate program, better utilization of existing loss mitigation programs (e.g., Graduated Repayment Period program (“GRP”) and rate modifications), and the use of a program offering short-term payment reductions (permitting interest-only payments for up to six months) for certain early-stage delinquencies. The full impact of these changes to our collections practices described above will only be realized over the long term. When we calculated the allowance for credit losses under CECL at December 31, 2021, our loan loss reserves were significantly impacted because we expect the life of loan defaults on our overall Private Education Loan portfolio to increase, in part as a result of the changes to our credit administration practices described above. We expect to learn more about how our borrowers are reacting to these changes to our credit administration practices and, as we analyze such reactions, we will continue to refine our estimates of the impact of those changes on our allowance for credit losses. As discussed above, we will continue to monitor our credit administration practices and may modify them further from time to time based upon performance, industry conventions, and/or regulatory feedback. The period of delinquency for loans is based on the number of days scheduled payments are contractually past due. As of December 31, 2021 and 2020, we had $80 million and $81 million, respectively, of Private Education Loans held for investment and $34 million and $36 million, respectively, of FFELP Loans held for investment which were more than 90 days delinquent that continue to accrue interest. At December 31, 2021 and 2020, we had no loans in nonaccrual status. Borrower-in-Custody Arrangements We maintain Borrower-in-Custody arrangements with the FRB. Under these arrangements, we can pledge FFELP Loans or Private Education Loans to the FRB to secure any advances and accrued interest generated under the Primary Credit program at the FRB. As of December 31, 2021 and 2020, we had $2.9 billion and $3.3 billion, respectively, of Private Education Loans pledged to this borrowing facility, as discussed further in Note 11, “Borrowings.” We did not have any FFELP consolidation loans pledged at December 31, 2021 or 2020. Loans Held for Investment by Region At December 31, 2021 and 2020, 38.4 percent and 38.8 percent, respectively, of total education loans were concentrated in the following states: As of December 31, 2021 2020 New York 9.4 % 9.7 % California 9.6 9.6 Pennsylvania 7.8 8.0 New Jersey 6.0 6.2 Texas 5.6 5.3 38.4 % 38.8 % No other state had a concentration of total education loans in excess of 5 percent of the aggregate outstanding education loans held for investment. |
Loans Held for Sale
Loans Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Loans Held for Sale | Loans Held for Investment Loans held for investment consist of Private Education Loans, FFELP Loans, and Credit Cards. We use “Personal Loans” to mean those unsecured loans to individuals that may be used for non-educational purposes. We sold our entire Personal Loan portfolio in the third quarter of 2020. Our Private Education Loans are made largely to bridge the gap between the cost of higher education and the amount funded through financial aid, government loans, and customers’ resources. Private Education Loans bear the full credit risk of the customer. We manage this risk through risk-performance underwriting strategies and qualified cosigners. Private Education Loans may be fixed-rate or may carry a variable interest rate indexed to LIBOR, the London interbank offered rate, or SOFR, the Secured Overnight Financing Rate. As of December 31, 2021 and 2020, 52.1 percent and 55 percent, respectively, of all of our Private Education Loans were indexed to LIBOR or SOFR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of Private Education Loans in our portfolio are cosigned. We also encourage customers to make payments while in school. FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement on all qualifying claims. In the third quarter of 2020, we sold our entire Personal Loan portfolio, including $697 million of principal and $7 million in accrued interest, which resulted in a $43 million reduction to our provision for credit losses in that period. In 2020, we recognized $238 million gains from the sale of approximately $3.1 billion of our Private Education Loans, including $2.9 billion of principal and $199 million in capitalized interest, to unaffiliated third-parties. In 2021, we recognized $548 million gains from the sale of approximately $4.24 billion of our Private Education Loans, including $3.98 billion of principal and $264 million in capitalized interest, to unaffiliated third-parties. There were VIEs created in the execution of certain of these loan sales; however, based on our consolidation analysis, we are not the primary beneficiary of these VIEs. These transactions qualified for sale treatment and removed the balance of the loans from our balance sheet on the respective settlement dates. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales. For additional information, see Notes to Consolidated Financial Statements, Note 11, “Borrowings - Unconsolidated VIEs.” Loans held for investment are summarized as follows: As of December 31, 2021 2020 Private Education Loans: Fixed-rate $ 9,920,547 $ 8,950,216 Variable-rate 10,796,316 10,779,121 Total Private Education Loans, gross 20,716,863 19,729,337 Deferred origination costs and unamortized premium/ (discount) 67,488 63,475 Allowance for credit losses (1,158,977) (1,355,844) Total Private Education Loans, net 19,625,374 18,436,968 FFELP Loans 695,216 737,593 Deferred origination costs and unamortized premium/ (discount) 1,815 1,993 Allowance for credit losses (4,077) (4,378) Total FFELP Loans, net 692,954 735,208 Credit Cards (fixed-rate) 25,014 12,238 Deferred origination costs and unamortized premium/ (discount) 222 230 Allowance for credit losses (2,281) (1,501) Total Credit Cards, net 22,955 10,967 Loans held for investment, net $ 20,341,283 $ 19,183,143 The estimated weighted average life of education loans in our portfolio was approximately 4.7 years and 5.4 years at December 31, 2021 and 2020, respectively. The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: 2021 2020 2019 Years ended December 31, (dollars in thousands) Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 20,968,061 8.25 % $ 22,426,216 8.42 % $ 22,225,473 9.32 % FFELP Loans 718,186 3.43 757,953 3.76 814,198 4.79 Personal Loans — — 582,552 12.43 1,141,503 12.09 Credit Cards 14,982 4.67 9,390 (6.04) — — Total portfolio $ 21,701,229 $ 23,776,111 $ 24,181,174 Certain Collection Tools — Private Education Loans We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations and achieve better student outcomes, and increase the collectability of the loan. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. Forbearance is granted prospectively for borrowers who are current in their payments and may be granted retroactively for certain delinquent borrowers. Forbearance allows a borrower to not make scheduled payments for a specified period of time. Using forbearance extends the original term of the loan by the term of forbearance taken. Forbearance does not grant any reduction in the total principal or interest repayment obligation. While a loan is in forbearance status, interest continues to accrue and is capitalized (added to principal) at the end of the forbearance. Interest will not capitalize at the end of certain types of forbearance, such as disaster forbearance, however. We grant forbearance through our servicing centers to borrowers who are current in their payments and through our collections centers to certain borrowers who are delinquent. Our forbearance policies and practices vary depending upon whether a borrower is current or delinquent at the time forbearance is requested, generally with stricter payment requirements for delinquent borrowers. We view the population of borrowers that use forbearance positively because the borrowers are either proactively reaching out to us to obtain assistance in managing their obligations or are working with our collections center to bring their loans current. Forbearance may be granted through our servicing centers to customers who are exiting their grace period, and to other customers who are current in their payments, to provide temporary payment relief. In these circumstances, a customer’s loan is placed into a forbearance status in limited monthly increments and is reflected in the forbearance status at month-end during this time. At the end of the forbearance period, the customer will enter repayment status as current and is expected to begin making scheduled monthly payments. Forbearance may also be granted through our collections centers to customers who are delinquent in their payments. If specific payment requirements are met, the forbearance can cure the delinquency and the customer is returned to a current repayment status. Forbearance as a collection tool is used most effectively when applying historical experience and our judgment to a customer’s unique situation. We leverage updated customer information and other decision support tools to best determine who will be granted forbearance based on our expectations as to a customer’s ability and willingness to repay their obligation. This strategy is aimed at assisting customers while mitigating the risks of delinquency and default as well as encouraging resolution of delinquent loans. In most instances, we require one payment, as an indication of a customer’s willingness and ability to repay, before granting forbearance to delinquent borrowers. Historically, we have utilized disaster forbearance to assist borrowers affected by material events, including hurricanes, wildfires, floods, and the COVID-19 pandemic. We typically grant disaster forbearance to affected borrowers in increments of up to three months at a time, but the disaster forbearance granted generally does not apply toward the 12-month forbearance limit described below. During COVID-19, our customers experienced higher levels of financial hardship, which initially led to higher levels of forbearance. We expect for some customers financial hardship may lead to higher levels of delinquencies and defaults in the future, as borrowers who had received disaster forbearance from us re-enter repayment status. Beginning in June 2021, we stopped granting disaster forbearance in response to the COVID-19 pandemic. As borrowers in the various delinquency buckets exit disaster forbearance and begin to enter repayment, we expect elevated levels of losses on this segment of our customers. We expect that, left unabated, this deterioration in delinquency and default rates may persist until economic conditions return to pre-pandemic levels. Management continually monitors our credit administration practices and may periodically modify these practices based upon performance, industry conventions, and/or regulatory feedback. In light of these considerations, we previously announced certain planned changes to our credit administration practices, including the imposition of limits on the number of forbearance months granted consecutively and the number of times certain extended or reduced repayment alternatives may be granted. Prior to implementation of the previously announced changes, borrowers could receive consecutive forbearance grants without intervening payments of principal and interest, if they satisfied all eligibility requirements. We commenced testing in October 2019 for some of the previously announced planned changes on a very small percentage of our total portfolio and in March 2020 we began to expand the number of borrowers who would be subject to the new credit administration practices. However, due to the COVID-19 pandemic, in April 2020 we postponed our efforts so that we could be more flexible in dealing with our customers’ financial hardship. In October 2020, we re-initiated a multi-phased deployment of certain previously announced credit administration practices changes. In October 2021, we announced additional planned changes to our credit administration practices, which we implemented in December 2021. Currently, we generally grant forbearance in increments of one We also offer rate and term modifications to customers experiencing more severe hardship. Currently, we temporarily reduce the contractual interest rate on a loan to 4 percent for a two-year period and, in the vast majority of cases, permanently extend the final maturity date of the loan. As part of demonstrating the ability and willingness to pay, the customer must make three consecutive monthly payments at the reduced payment to qualify for the program. The combination of the rate reduction and maturity extension helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. We currently limit the granting of a permanent extension of the final maturity date of the loan under our loan modification program to one time over the life of the loan. We also currently permit two consecutive rate reductions to 4.0 percent so long as the borrower qualifies and makes three consecutive monthly payments at the reduced payment in connection with each rate reduction. We currently require 12 months of positive payment performance after the interest rate adjusts upward to its previous rate (at the end of the rate reduction periods) before the borrower may be eligible for a forbearance or certain other repayment alternatives, however. We also now limit the number of interest rate reductions to twice over the life of the loan. At December 31, 2021 and December 31, 2020, 7.2 percent and 7.8 percent, respectively, of our loans then currently in full principal and interest repayment status were subject to interest rate reductions made under our rate modification program. While there are limitations to our estimate of the future impact of the various credit administration practices changes we have implemented, absent the effect of any mitigating measures, we expect that the credit administration practices described above, including the changes we implemented in December 2021, will accelerate periodic defaults and could increase periodic defaults in our Private Education Loan held for investment portfolio by approximately 10.1 percent to 16.6 percent. Among the measures that we have implemented and may modify further and expect may partly offset or moderate any acceleration of or increase in defaults will be greater focus on the risk assessment process to ensure borrowers are mapped to the appropriate program, better utilization of existing loss mitigation programs (e.g., Graduated Repayment Period program (“GRP”) and rate modifications), and the use of a program offering short-term payment reductions (permitting interest-only payments for up to six months) for certain early-stage delinquencies. The full impact of these changes to our collections practices described above will only be realized over the long term. When we calculated the allowance for credit losses under CECL at December 31, 2021, our loan loss reserves were significantly impacted because we expect the life of loan defaults on our overall Private Education Loan portfolio to increase, in part as a result of the changes to our credit administration practices described above. We expect to learn more about how our borrowers are reacting to these changes to our credit administration practices and, as we analyze such reactions, we will continue to refine our estimates of the impact of those changes on our allowance for credit losses. As discussed above, we will continue to monitor our credit administration practices and may modify them further from time to time based upon performance, industry conventions, and/or regulatory feedback. The period of delinquency for loans is based on the number of days scheduled payments are contractually past due. As of December 31, 2021 and 2020, we had $80 million and $81 million, respectively, of Private Education Loans held for investment and $34 million and $36 million, respectively, of FFELP Loans held for investment which were more than 90 days delinquent that continue to accrue interest. At December 31, 2021 and 2020, we had no loans in nonaccrual status. Borrower-in-Custody Arrangements We maintain Borrower-in-Custody arrangements with the FRB. Under these arrangements, we can pledge FFELP Loans or Private Education Loans to the FRB to secure any advances and accrued interest generated under the Primary Credit program at the FRB. As of December 31, 2021 and 2020, we had $2.9 billion and $3.3 billion, respectively, of Private Education Loans pledged to this borrowing facility, as discussed further in Note 11, “Borrowings.” We did not have any FFELP consolidation loans pledged at December 31, 2021 or 2020. Loans Held for Investment by Region At December 31, 2021 and 2020, 38.4 percent and 38.8 percent, respectively, of total education loans were concentrated in the following states: As of December 31, 2021 2020 New York 9.4 % 9.7 % California 9.6 9.6 Pennsylvania 7.8 8.0 New Jersey 6.0 6.2 Texas 5.6 5.3 38.4 % 38.8 % No other state had a concentration of total education loans in excess of 5 percent of the aggregate outstanding education loans held for investment. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit LossesOur provision for credit losses represents the periodic expense of maintaining an allowance sufficient to absorb lifetime expected credit losses in the held for investment loan portfolios. The evaluation of the allowance for credit losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for credit losses is appropriate to cover lifetime expected losses incurred in the loan portfolios. See Note 2, “Significant Accounting Policies — Allowance for Credit Losses - 2021 and 2020, — Allowance for Private Education Loan Losses - 2021 and 2020, — Allowance for FFELP Loan Losses - 2021 and 2020, — Allowance for Credit Card Loans - 2021 and 2020, — Allowance for Credit Losses - 2019, — Allowance for Private Education Loan Losses - 2019, — Allowance for FFELP Loan Losses - 2019, and — Allowance for Credit Card Loans - 2019” for a more detailed discussion. Allowance for Credit Losses Metrics Year Ended December 31, 2021 FFELP Private Education Credit Cards Total Allowance for Credit Losses Beginning balance $ 4,378 $ 1,355,844 $ 1,501 $ 1,361,723 Transfer from unfunded commitment liability (1) — 301,655 — 301,655 Provisions: Provision for current period 20 (233,852) 1,124 (232,708) Loan sale reduction to provision — (66,460) — (66,460) Loans transferred to held-for-sale — 1,887 — 1,887 Total provisions (2) 20 (298,425) 1,124 (297,281) Net charge-offs: Charge-offs (321) (229,591) (356) (230,268) Recoveries — 29,494 12 29,506 Net charge-offs (321) (200,097) (344) (200,762) Ending Balance $ 4,077 $ 1,158,977 $ 2,281 $ 1,165,335 Allowance: Ending balance: individually evaluated for impairment $ — $ 47,712 $ — $ 47,712 Ending balance: collectively evaluated for impairment $ 4,077 $ 1,111,265 $ 2,281 $ 1,117,623 Loans: Ending balance: individually evaluated for impairment $ — $ 1,057,665 $ — $ 1,057,665 Ending balance: collectively evaluated for impairment $ 695,216 $ 19,659,198 $ 25,014 $ 20,379,428 Net charge-offs as a percentage of average loans in repayment (3) 0.06 % 1.33 % 2.24 % Allowance as a percentage of the ending total loan balance 0.59 % 5.59 % 9.12 % Allowance as a percentage of the ending loans in repayment (3) 0.74 % 7.47 % 9.12 % Allowance coverage of net charge-offs 12.70 5.79 6.63 Ending total loans, gross $ 695,216 $ 20,716,863 $ 25,014 Average loans in repayment (3) $ 545,689 $ 15,019,869 $ 15,343 Ending loans in repayment (3) $ 553,980 $ 15,511,212 $ 25,014 (1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Year Ended December 31, 2021 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (298,425) Provisions for unfunded loan commitments 264,324 Total Private Education Loan provisions for credit losses (34,101) Other impacts to the provisions for credit losses: FFELP Loans 20 Credit Cards 1,124 Total 1,144 Provisions for credit losses reported in consolidated statements of income $ (32,957) (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Year Ended December 31, 2020 FFELP Private Education Personal Credit Cards Total Allowance for Credit Losses Beginning balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Day 1 adjustment for the adoption of CECL 2,852 1,060,830 79,183 188 1,143,053 Balance at January 1, 2020 4,485 1,435,130 145,060 290 1,584,965 Transfer from unfunded commitment liability (1) — 320,808 — — 320,808 Provisions: Provision for current period 412 148,673 40,485 1,328 190,898 Loan sale reduction to provision — (161,793) (42,916) — (204,709) Loans transferred to held-for-sale — (205,669) — — (205,669) Total provisions (2) 412 (218,789) (2,431) 1,328 (219,480) Net charge-offs: Charge-offs (519) (205,326) (39,079) (119) (245,043) Recoveries — 24,021 4,984 2 29,007 Net charge-offs (519) (181,305) (34,095) (117) (216,036) Loan sales — — (108,534) — (108,534) Ending Balance $ 4,378 $ 1,355,844 $ — $ 1,501 $ 1,361,723 Allowance: Ending balance: individually evaluated for impairment $ — $ 104,265 $ — $ — $ 104,265 Ending balance: collectively evaluated for impairment $ 4,378 $ 1,251,579 $ — $ 1,501 $ 1,257,458 Loans: Ending balance: individually evaluated for impairment $ — $ 1,274,590 $ — $ — $ 1,274,590 Ending balance: collectively evaluated for impairment $ 737,593 $ 18,454,747 $ — $ 12,238 $ 19,204,578 Net charge-offs as a percentage of average loans in repayment (3) 0.09 % 1.17 % — % 1.26 % Allowance as a percentage of the ending total loan balance 0.59 % 6.87 % — % 12.27 % Allowance as a percentage of the ending loans in repayment (3) 0.76 % 9.48 % — % 12.27 % Allowance coverage of net charge-offs 8.44 7.48 — 12.83 Ending total loans, gross $ 737,593 $ 19,729,337 $ — $ 12,238 Average loans in repayment (3) $ 549,584 $ 15,518,851 $ — $ 9,286 Ending loans in repayment (3) $ 573,361 $ 14,304,821 $ — $ 12,238 (1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Year Ended December 31, 2020 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (218,789) Provisions for unfunded loan commitments 312,613 Total Private Education Loan provisions for credit losses 93,824 Other impacts to the provisions for credit losses: Personal Loans (2,431) FFELP Loans 412 Credit Cards 1,328 Total (691) Provisions for credit losses reported in consolidated statements of income $ 93,133 (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Year Ended December 31, 2019 FFELP Private Education Personal Credit Cards Total Allowance for Credit Losses Beginning balance $ 977 $ 277,943 $ 62,201 $ — $ 341,121 Total provision 1,478 279,570 72,783 103 353,934 Net charge-offs: Charge-offs (822) (208,978) (74,313) (1) (284,114) Recoveries — 25,765 5,206 — 30,971 Net charge-offs (822) (183,213) (69,107) (1) (253,143) Ending Balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Allowance: Ending balance: individually evaluated for impairment $ — $ 186,697 $ — $ — $ 186,697 Ending balance: collectively evaluated for impairment $ 1,633 $ 187,603 $ 65,877 $ 102 $ 255,215 Loans: Ending balance: individually evaluated for impairment $ — $ 1,581,966 $ — $ — $ 1,581,966 Ending balance: collectively evaluated for impairment $ 783,306 $ 21,607,625 $ 1,049,007 $ 3,884 $ 23,443,822 Net charge-offs as a percentage of average loans in repayment (1) 0.13 % 1.17 % 6.07 % 0.13 % Allowance as a percentage of the ending total loan balance 0.21 % 1.61 % 6.28 % 2.63 % Allowance as a percentage of the ending loans in repayment (1) 0.26 % 2.23 % 6.28 % 2.63 % Allowance coverage of net charge-offs 1.99 2.04 0.95 102.00 Ending total loans, gross $ 783,306 $ 23,189,591 $ 1,049,007 $ 3,884 Average loans in repayment (1) $ 631,029 $ 15,605,927 $ 1,138,887 $ 786 Ending loans in repayment (1) $ 617,646 $ 16,787,670 $ 1,049,007 $ 3,884 (1) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Credit Losses - Forecast Assumptions In determining the adequacy of the allowance for credit losses, we include forecasts of college graduate unemployment and the Consumer Price Index in our loss forecasting models. We obtain forecasts for these two inputs from Moody’s Analytics. Moody’s Analytics provides a range of forecasts for each of these inputs with various likelihoods of occurring. We determine which forecasts we will include in our estimation of allowance for credit losses and the associated weightings for each of these inputs. At January 1, 2020 (the initial adoption date of CECL), December 31, 2020, and December 31, 2021, we used the Base (50th percentile likelihood of occurring)/S1 (stronger near-term growth scenario with 10 percent likelihood of occurring)/S3 (downside scenario with 10 percent likelihood of occurring) scenarios and weighted them 40 percent, 30 percent, and 30 percent, respectively. Management reviews both the scenarios and their respective weightings each quarter in determining the allowance for credit losses. For the year ended December 31, 2021, we had negative total provisions for credit losses of $33 million. This decrease of $126 million in 2021 compared with the year-ago period was primarily the result of improving economic forecasts in 2021 and faster prepayment speeds. During the first quarter of 2021, we increased our estimates of future prepayment speeds during both the two-year reasonable and supportable period as well as the remaining term of the underlying loans. These faster estimated prepayment speeds during the two-year reasonable and supportable period reflect the significant improvement in economic forecasts, as well as the implementation of an updated prepayment speed model. In the fourth quarter of 2021, we increased our long-term estimate of prepayment speeds to reflect higher long-term prepayment experience. Partially offsetting these benefits were additional provisions to reflect the adoption of our credit administration practices changes and other management overlays. Troubled Debt Restructurings All of our loans are collectively assessed for impairment, except for loans classified as TDRs (where we conduct individual assessments of impairment). We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations, achieve better student outcomes, and increase the collectability of the loan. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. When we give a borrower facing financial difficulty an interest rate reduction, we temporarily reduce the contractual interest rate on a loan to 4.0 percent for a two-year period and, in the vast majority of cases, permanently extend the final maturity date of the loan. The combination of these two loan term changes helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. At December 31, 2021 and 2020, 7.2 percent and 7.8 percent, respectively, of our Private Education Loans held for investment then currently in full principal and interest repayment status were subject to interest rate reductions made under our rate modification program. Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. As of both December 31, 2021 and 2020, approximately 47 percent of TDRs were classified as such due to their forbearance status. See Note 2, “Significant Accounting Policies — Allowance for Credit Losses” for a more detailed discussion. Within the Private Education Loan portfolio, loans 90 days or greater past due are nonperforming. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event of default and, therefore, we do not deem FFELP Loans as nonperforming from a credit risk perspective at any point in their life cycle prior to claim payment and continue to accrue interest on those loans through the date of claim. At December 31, 2021 and 2020, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance, and related allowance for our TDR loans. Years Ended December 31, Recorded Investment Unpaid Principal Balance Allowance 2021: TDR Loans $ 1,093,387 $ 1,057,665 $ 47,712 2020 TDR Loans $ 1,312,805 $ 1,274,590 $ 104,265 The following table provides the average recorded investment and interest income recognized for our TDR loans. Years Ended December 31, (dollars in thousands) 2021 2020 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,220,739 $ 84,822 $ 1,546,908 $ 100,125 $ 1,434,137 $ 95,507 The following table provides information regarding the loan status and aging of TDR loans. For the periods presented below, we updated our delinquency bucket periods from what we reported in our 2020 Form 10-K to conform with the delinquency bucket periods defined by the Federal Financial Institutions Examination Council (“FFIEC”). 2021 2020 As of December 31, Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 80,281 $ 88,750 TDR loans in forbearance (2) 41,464 76,704 TDR loans in repayment (3) and percentage of each status: Loans current 832,018 88.9 % 971,880 87.7 % Loans delinquent 30-59 days (4) 48,766 5.2 59,249 5.3 Loans delinquent 60-89 days (4) 30,575 3.3 43,576 3.9 Loans 90 days or greater past due (4) 24,561 2.6 34,431 3.1 Total TDR loans in repayment (3) 935,920 100.0 % 1,109,136 100.0 % Total TDR loans, gross $ 1,057,665 $ 1,274,590 (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period, (but, for purposes of the table, do not include those loans while they are in forbearance). (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. The following table provides the amount of modified loans (which include forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Years Ended December 31, (dollars in thousands) 2021 2020 2019 Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default TDR Loans $ 7,410 $ 64,682 $ 9,626 $ 207,001 $ 71,267 $ 75,153 $ 515,398 $ 74,137 $ 111,810 (1) Represents the principal balance of loans that have been modified during the period and resulted in a TDR. Private Education Loans Held for Investment - Key Credit Quality Indicators FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest in the event of default; therefore, there are no key credit quality indicators associated with FFELP Loans. For Private Education Loans, the key credit quality indicators are FICO scores, the existence of a cosigner, the loan status, and loan seasoning. The FICO scores are assessed at original approval and periodically refreshed/updated through the loan’s term. The following tables highlight the gross principal balance of our Private Education Loan portfolio (held for investment), by year of origination, stratified by key credit quality indicators. As of December 31, 2021 Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination 2021 (1) 2020 (1) 2019 (1) 2018 (1) 2017 (1) 2016 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 3,263,892 $ 3,604,553 $ 2,778,262 $ 2,025,463 $ 1,765,719 $ 4,753,775 $ 18,191,664 88 % Without cosigner 558,469 561,730 438,263 294,597 212,514 459,626 2,525,199 12 Total $ 3,822,361 $ 4,166,283 $ 3,216,525 $ 2,320,060 $ 1,978,233 $ 5,213,401 $ 20,716,863 100 % FICO at Origination (2) : Less than 670 $ 248,368 $ 238,005 $ 251,157 $ 193,123 $ 166,048 $ 428,416 $ 1,525,117 7 % 670-699 508,264 564,497 493,237 363,313 329,807 884,981 3,144,099 15 700-749 1,210,833 1,348,269 1,057,001 770,452 660,270 1,753,709 6,800,534 33 Greater than or equal to 750 1,854,896 2,015,512 1,415,130 993,172 822,108 2,146,295 9,247,113 45 Total $ 3,822,361 $ 4,166,283 $ 3,216,525 $ 2,320,060 $ 1,978,233 $ 5,213,401 $ 20,716,863 100 % FICO Refreshed (2)(3) : Less than 670 $ 326,613 $ 279,578 $ 273,652 $ 235,684 $ 233,022 $ 739,268 $ 2,087,817 10 % 670-699 506,021 475,674 365,133 256,400 209,536 570,605 2,383,369 12 700-749 1,209,493 1,285,015 978,763 682,024 568,766 1,448,692 6,172,753 30 Greater than or equal to 750 1,780,234 2,126,016 1,598,977 1,145,952 966,909 2,454,836 10,072,924 48 Total $ 3,822,361 $ 4,166,283 $ 3,216,525 $ 2,320,060 $ 1,978,233 $ 5,213,401 $ 20,716,863 100 % Seasoning (4) : 1-12 payments $ 2,265,811 $ 594,850 $ 515,328 $ 385,246 $ 340,242 $ 501,269 $ 4,602,746 22 % 13-24 payments — 2,287,737 362,674 203,674 211,064 479,540 3,544,689 17 25-36 payments — 173 1,565,203 312,049 164,575 482,369 2,524,369 12 37-48 payments — — — 983,434 295,206 464,563 1,743,203 8 More than 48 payments — — — — 671,138 2,726,304 3,397,442 16 Not yet in repayment 1,556,550 1,283,523 773,320 435,657 296,008 559,356 4,904,414 25 Total $ 3,822,361 $ 4,166,283 $ 3,216,525 $ 2,320,060 $ 1,978,233 $ 5,213,401 $ 20,716,863 100 % 2021 Current period (5) gross charge-offs $ (1,183) $ (8,604) $ (23,866) $ (32,741) $ (37,186) $ (126,011) $ (229,591) 2021 Current period (5) recoveries 35 540 2,092 3,693 4,450 18,684 29,494 2021 Current period (5) net charge-offs $ (1,148) $ (8,064) $ (21,774) $ (29,048) $ (32,736) $ (107,327) $ (200,097) Total accrued interest by origination vintage $ 109,233 $ 247,418 $ 270,242 $ 198,816 $ 131,685 $ 229,729 $ 1,187,123 (1) Balance represents gross Private Education Loans held for investment. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2021. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. (5) Current period refers to period from January 1, 2021 through December 31, 2021. As of December 31, 2020 Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination 2020 (1) 2019 (1) 2018 (1) 2017 (1) 2016 (1) 2015 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 2,915,328 $ 3,467,219 $ 2,556,400 $ 2,262,635 $ 1,977,952 $ 4,198,748 $ 17,378,282 88 % Without cosigner 527,437 559,629 384,111 277,159 211,270 391,449 2,351,055 12 Total $ 3,442,765 $ 4,026,848 $ 2,940,511 $ 2,539,794 $ 2,189,222 $ 4,590,197 $ 19,729,337 100 % FICO at Origination (2) : Less than 670 $ 195,214 $ 290,711 $ 225,276 $ 197,948 $ 162,413 $ 369,609 $ 1,441,171 7 % 670-699 464,785 594,950 441,357 407,394 351,303 771,477 3,031,266 16 700-749 1,111,373 1,310,390 967,802 846,983 740,028 1,533,517 6,510,093 33 Greater than or equal to 750 1,671,393 1,830,797 1,306,076 1,087,469 935,478 1,915,594 8,746,807 44 Total $ 3,442,765 $ 4,026,848 $ 2,940,511 $ 2,539,794 $ 2,189,222 $ 4,590,197 $ 19,729,337 100 % FICO Refreshed (2)(3) : Less than 670 $ 240,154 $ 331,229 $ 301,784 $ 298,195 $ 293,077 $ 734,599 $ 2,199,038 11 % 670-699 438,665 493,135 336,966 283,906 231,759 504,779 2,289,210 12 700-749 1,102,666 1,248,806 871,677 734,222 603,160 1,220,468 5,780,999 29 Greater than or equal to 750 1,661,280 1,953,678 1,430,084 1,223,471 1,061,226 2,130,351 9,460,090 48 Total $ 3,442,765 $ 4,026,848 $ 2,940,511 $ 2,539,794 $ 2,189,222 $ 4,590,197 $ 19,729,337 100 % Seasoning (4) : 1-12 payments $ 2,068,517 $ 600,038 $ 469,143 $ 472,258 $ 381,197 $ 507,343 $ 4,498,496 23 % 13-24 payments 163 2,096,635 383,977 223,332 217,379 425,345 3,346,831 17 25-36 payments — — 1,353,567 370,250 181,940 439,337 2,345,094 12 37-48 payments — — — 965,476 351,433 402,552 1,719,461 9 More than 48 payments — — — — 729,510 2,310,905 3,040,415 15 Not yet in repayment 1,374,085 1,330,175 733,824 508,478 327,763 504,715 4,779,040 24 Total $ 3,442,765 $ 4,026,848 $ 2,940,511 $ 2,539,794 $ 2,189,222 $ 4,590,197 $ 19,729,337 100 % 2020 Current period (5) gross charge-offs $ (1,087) $ (10,940) $ (27,000) $ (35,851) $ (36,416) $ (94,032) $ (205,326) 2020 Current period (5) recoveries 42 636 2,274 3,585 4,284 13,200 24,021 2020 Current period (5) net charge-offs $ (1,045) $ (10,304) $ (24,726) $ (32,266) $ (32,132) $ (80,832) $ (181,305) Total accrued interest by origination vintage $ 90,438 $ 265,688 $ 252,251 $ 209,178 $ 141,094 $ 210,247 $ 1,168,896 (1) Balance represents gross Private Education Loans held for investment. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2020. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. (5) Current period refers to period from January 1, 2020 through December 31, 2020. Delinquencies - Private Education Loans Held for Investment The following tables provide information regarding the loan status of our Private Education Loans held for investment, by year of origination. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the following tables, do not include those loans while they are in forbearance). For the periods presented below, we updated our delinquency bucket periods from what we reported in our 2020 Form 10-K to conform with the delinquency bucket periods defined by the FFIEC. Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2021 2021 2020 2019 2018 2017 2016 and Prior Total Loans in-school/grace/deferment (1) $ 1,556,550 $ 1,283,523 $ 773,320 $ 435,657 $ 296,008 $ 559,356 $ 4,904,414 Loans in forbearance (2) 11,951 55,844 52,364 43,613 41,355 96,110 301,237 Loans in repayment: Loans current 2,234,876 2,786,646 2,321,728 1,772,651 1,570,815 4,319,057 15,005,773 Loans delinquent 30-59 days (3) 15,148 29,146 46,616 43,197 41,695 132,757 308,559 Loans delinquent 60-89 days (3) 3,194 7,441 14,044 14,310 16,425 61,533 116,947 Loans 90 days or greater past due (3) 642 3,683 8,453 10,632 11,935 44,588 79,933 Total Private Education Loans in repayment 2,253,860 2,826,916 2,390,841 1,840,790 1,640,870 4,557,935 15,511,212 Total Private Education Loans, gross 3,822,361 4,166,283 3,216,525 2,320,060 1,978,233 5,213,401 20,716,863 Private Education Loans deferred origination costs and unamortized premium/(discount) 22,169 16,067 9,575 5,918 4,588 9,171 67,488 Total Private Education Loans 3,844,530 4,182,350 3,226,100 2,325,978 1,982,821 5,222,572 20,784,351 Private Education Loans allowance for losses (248,102) (239,507) (195,223) (129,678) (99,982) (246,485) (1,158,977) Private Education Loans, net $ 3,596,428 $ 3,942,843 $ 3,030,877 $ 2,196,300 $ 1,882,839 $ 4,976,087 $ 19,625,374 Percentage of Private Education Loans in repayment 59.0 % 67.9 % 74.3 % 79.3 % 82.9 % 87.4 % 74.9 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.8 % 1.4 % 2.9 % 3.7 % 4.3 % 5.2 % 3.3 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.5 % 1.9 % 2.1 % 2.3 % 2.5 % 2.1 % 1.9 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2020 2020 2019 2018 2017 2016 2015 and Prior Total Loans in-school/grace/deferment (1)(2) $ 1,374,085 $ 1,330,175 $ 733,824 $ 508,478 $ 327,763 $ 504,715 $ 4,779,040 Loans in forbearance (1)(3) 16,159 92,677 110,319 118,946 109,073 198,302 645,476 Loans in repayment (1) : Loans current 2,043,033 2,573,228 2,045,012 1,850,539 1,685,572 3,701,564 13,898,948 Loans delinquent 30-59 days (4) 6,400 16,983 26,934 30,771 33,040 91,400 205,528 Loans delinquent 60-89 days (4) 2,628 9,143 15,026 18,121 19,064 55,661 119,643 Loans 90 days or greater past due (4) 460 4,642 9,396 12,939 14,710 38,555 80,702 Total Private Education Loans in repayment 2,052,521 2,603,996 2,096,368 1,912,370 1,752,386 3,887,180 14,304,821 Total Private Education Loans, gross 3,442,765 4,026,848 2,940,511 2,539,794 2,189,222 4,590,197 19,729,337 Private Education Loans deferred origination costs and unamortized premium/(discount) 21,129 13,933 8,671 6,708 5,721 7,313 63,475 Total Private Education Loans 3,463,894 4,040,781 2,949,182 2,546,502 2,194,943 4,597,510 19,792,812 Private Education Loans allowance for losses (210,875) (298,776) (218,136) (184,265) (150,150) (293,642) (1,355,844) Private Education Loans, net $ 3,253,019 $ 3,742,005 $ 2,731,046 $ 2,362,237 $ 2,044,793 $ 4,303,868 $ 18,436,968 Percentage of Private Education Loans in repayment 59.6 % 64.7 % 71.3 % 75.3 % 80.0 % 84.7 % 72.5 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.5 % 1.2 % 2.4 % 3.2 % 3.8 % 4.8 % 2.8 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.8 % 3.4 % 5.0 % 5.9 % 5.9 % 4.9 % 4.3 % (1) For some students, going back to school in the fall of 2020 was not an option because of the pandemic, or for other reasons. Therefore, some students took a “gap year” before returning to school. In 2020, for those students that had unexpectedly separated from school, we provided an extension of time through fall 2021 to re-enroll, before beginning their grace period that occurs prior to entering full principal and interest repayment status. At December 31, 2020, the loans in the “in-school/grace/deferment” category above include $401 million of Private Education Loans whose borrowers did not return to school in the fall of 2020 and who then received such extension of time from us to re-enroll before beginning their grace period. At December 31, 2020, the loans in the “in forbearance” category above include $30 million of Private Education Loans whose borrowers did not return to school in the fall of 2020 and who then received such extension of time from us to re-enroll before beginning their grace period. At December 31, 2020, the loans in the “in repayment” category above include $609 million of Private Education Loans whose borrowers did not return to school in the fall of 2020 and who then received such extension of time from us to re-enroll before beginning their grace period. This program ended in September 2021. (2) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (3) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2019 2019 2018 2017 2016 2015 2014 and Prior Total Loans in-school/grace/deferment (1) $ 1,670,644 $ 1,580,513 $ 1,010,764 $ 635,798 $ 375,585 $ 414,101 $ 5,687,405 Loans in forbearance (2) 21,009 108,509 142,341 146,114 127,799 168,744 714,516 Loans in repayment: Loans current 2,340,221 3,159,878 2,781,132 2,566,815 2,225,721 3,241,884 16,315,651 Loans delinquent 30-59 days (3) 11,152 26,096 44,382 51,656 54,559 100,206 288,051 Loans delinquent 60-89 days (3) 3,087 9,527 17,048 21,161 24,562 45,917 121,302 Loans 90 days or greater past due (3) 935 3,850 7,818 12,314 12,946 24,803 62,666 Total Private Education Loans in repayment 2,355,395 3,199,351 2,850,380 2,651,946 2,317,788 3,412,810 16,787,670 Total Private Education Loans, gross 4,047,048 4,888,373 4,003,485 3,433,858 2,821,172 3,995,655 23,189,591 Private Education Loans deferred origination costs and unamortized premium/(discount) 23,661 17,699 13,843 12,304 8,564 5,153 81,224 Total Private Education Loans 4,070,709 4,906,072 4,017,328 3,446,162 2,829,736 4,000,808 23,270,815 Private Education Loans allowance for losses (3,013) (19,105) (44,858) (71,598) (80,974) (154,752) (374,300) Private Education Loans, net $ 4,067,696 $ 4,886,967 $ 3,972,470 $ 3,374,564 $ 2,748,762 $ 3,846,056 $ 22,896,515 Percentage of Private Education Loans in repayment 58.2 % 65.4 % 71.2 % 77.2 % 82.2 % 85.4 % 72.4 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.6 % 1.2 % 2.4 % 3.2 % 4.0 % 5.0 % 2.8 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.9 % 3.3 % 4.8 % 5.2 % 5.2 % 4.7 % 4.1 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Accrued Interest Receivable The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans 90 days and greater past due as compared to our allowance for uncollectible interest on loans making full interest payments. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period after separation from school. The allowance for this portion of interest is included in our loan loss reserve. The allowance for uncollectible interest exceeds the amou |
Unfunded Loan Commitments
Unfunded Loan Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Unfunded Loan Commitments | Unfunded Loan Commitments When we approve a Private Education Loan at the beginning of an academic year, that approval may cover the borrowing for the entire academic year. As such, we do not always disburse the full amount of the loan at the time of such approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). We estimate expected credit losses over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. See Note 2, “Significant Accounting Policies — Allowance for Credit Losses, — Allowance for Credit Losses - 2021 and 2020, — Off-Balance Sheet Exposure for Contractual Loan Commitments - 2021 and 2020” for additional information. At December 31, 2021, we had $1.8 billion of outstanding contractual loan commitments that we expect to fund during the remainder of the 2021/2022 academic year. The tables below summarize the activity in the allowance recorded to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheets, as well as the activity in the unfunded commitments balance. Years ended December 31, (dollars in thousands) 2021 2020 2019 Allowance Unfunded Commitments Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 110,044 $ 1,673,018 $ 2,481 $ 1,910,603 $ 2,165 $ 2,010,744 Day 1 adjustment for the adoption of CECL — — 115,758 — — — Balance at January 1 110,044 1,673,018 118,239 1,910,603 2,165 2,010,744 Provision/New commitments - net (1) 232,822 5,512,841 311,659 5,070,175 5,937 5,513,790 Other provision items 31,502 — 954 — 596 — Transfer - funded loans (2) (301,655) (5,408,883) (320,808) (5,307,760) (6,217) (5,613,931) Ending Balance $ 72,713 $ 1,776,976 $ 110,044 $ 1,673,018 $ 2,481 $ 1,910,603 (1) Net of expirations of commitments unused. (2) When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses. The unfunded commitments disclosed above represent the total amount of outstanding unfunded commitments at each period end. However, historically not all of these commitments are funded prior to the expiration of the commitments. We estimate the amount of commitments expected to be funded in calculating the reserve for unfunded commitments. The amount we expect to fund and use in our calculation of the reserve for unfunded commitments will change period to period based upon the loan characteristics of the underlying commitments. |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, net | Premises and Equipment, net The following is a summary of our premises and equipment. As of December 31, 2021 2020 Land and land improvements $ 12,356 $ 12,356 Buildings and leasehold improvements 122,300 120,971 Furniture, fixtures, and equipment 29,955 28,272 Software 88,710 76,500 Premises and equipment, gross 253,321 238,099 Accumulated depreciation (102,805) (83,429) Premises and equipment, net $ 150,516 $ 154,670 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at December 31, 2021 and 2020. As of December 31, 2021 2020 Deposits - interest bearing $ 20,826,692 $ 22,664,899 Deposits - non-interest bearing 1,432 1,140 Total deposits $ 20,828,124 $ 22,666,039 Our total deposits of $20.8 billion were comprised of $10.1 billion in brokered deposits and $10.7 billion in retail and other deposits at December 31, 2021, compared with total deposits of $22.7 billion, which were comprised of $11.9 billion in brokered deposits and $10.8 billion in retail and other deposits, at December 31, 2020. Interest bearing deposits as of December 31, 2021 and 2020 consisted of retail and brokered non-maturity savings deposits, retail and brokered non-maturity MMDAs and retail and brokered CDs. Interest bearing deposits include deposits from Educational 529 and Health Savings plans that diversify our funding sources and add deposits we consider to be core. These and other large omnibus accounts, aggregating the deposits of many individual depositors, represented $7.3 billion of our deposit total as of December 31, 2021, compared with $7.1 billion at December 31, 2020. Some of our deposit products are serviced by third-party providers. Placement fees associated with the brokered CDs are amortized into interest expense using the effective interest rate method. We recognized placement fee expense of $16 million, $19 million, and $18 million in the years ended December 31, 2021, 2020, and 2019, respectively. Fees paid to third-party brokers related to these CDs were $13 million, $5 million, and $28 million during the years ended December 31, 2021, 2020, and 2019, respectively. Interest bearing deposits at December 31, 2021 and 2020 are summarized as follows: 2021 2020 As of December 31, Amount Year-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 10,473,569 0.69 % $ 10,159,657 0.83 % Savings 959,122 0.43 907,976 0.55 Certificates of deposit 9,394,001 1.20 11,597,266 1.34 Deposits - interest bearing $ 20,826,692 $ 22,664,899 (1) Includes the effect of interest rate swaps in effective hedge relationships. Certificates of deposit remaining maturities are summarized as follows: As of December 31, 2021 2020 One year or less $ 4,407,370 $ 5,728,556 After one year to two years 2,297,955 3,363,022 After two years to three years 1,299,461 1,603,229 After three years to four years 299,737 553,911 After four years to five years 1,042,065 300,346 After five years 47,413 48,202 Total $ 9,394,001 $ 11,597,266 As of December 31, 2021 and 2020, there were $743 million and $571 million, respectively, of deposits exceeding FDIC insurance limits. Accrued interest on deposits was $35 million and $50 million at December 31, 2021 and 2020, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term ABS program and our Secured Borrowing Facility. The issuing entities for those secured borrowings are VIEs and are consolidated for accounting purposes. The following table summarizes our secured borrowings at December 31, 2021 and 2020. As of December 31, 2021 2020 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 986,138 $ 986,138 $ — $ 692,879 $ 692,879 Total unsecured borrowings — 986,138 986,138 — 692,879 692,879 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 3,897,996 3,897,996 — 3,261,233 3,261,233 Variable-rate — 1,046,856 1,046,856 — 1,235,105 1,235,105 Total Private Education Loan term securitizations — 4,944,852 4,944,852 — 4,496,338 4,496,338 Secured Borrowing Facility — — — — — — Total secured borrowings — 4,944,852 4,944,852 — 4,496,338 4,496,338 Total $ — $ 5,930,990 $ 5,930,990 $ — $ 5,189,217 $ 5,189,217 Short-term Borrowings On July 30, 2021, we amended our Secured Borrowing Facility to extend the maturity of the facility. The amount that can be borrowed under the facility is $2 billion. We hold 100 percent of the residual interest in the Secured Borrowing Facility trust. Under the Secured Borrowing Facility, we incur financing costs on unused borrowing capacity and on outstanding advances. The amended Secured Borrowing Facility extended the revolving period, during which we may borrow, repay, and reborrow funds, until May 17, 2022. The scheduled amortization period, during which amounts outstanding under the Secured Borrowing Facility must be repaid, ends on May 17, 2023 (or earlier, if certain material adverse events occur). At December 31, 2021, and December 31, 2020, there were no secured borrowings outstanding under the Secured Borrowing Facility. Short-term borrowings have a remaining term to maturity of one year or less. The following table summarizes the outstanding short-term borrowings, the weighted average interest rates at the end of the period, and the related average balance and weighted average interest rates during the period. The Secured Borrowing Facility’s contractual maturity is two years from the date of inception or renewal (one-year revolving period plus a one-year amortization period); however, we classify advances under our Secured Borrowing Facility as short-term borrowings because it is our intention to repay those advances within one year. The 5.125 percent unsecured Senior Notes due April 5, 2022, which we redeemed in the fourth quarter of 2021, were classified as short-term borrowings in April of 2021, and are included in the table below. December 31, 2021 Year Ended (Dollars in thousands) Ending Balance Weighted Average Average Balance Weighted Average Short-term borrowings: Unsecured Debt $ — — % $ 122,396 5.78 % Secured Borrowing Facility — — — — Total short-term borrowings $ — — % $ 122,396 5.78 % Maximum outstanding at any month end $ 199,651 December 31, 2020 Year Ended (Dollars in thousands) Ending Balance Weighted Average Average Balance Weighted Average Interest Rate (1) Short-term borrowings: Secured Borrowing Facility $ — — % $ 45,820 24.99 % Maximum outstanding at any month end $ 289,230 (1) The interest for the non-use fees is calculated based on the Secured Borrowing Facility’s maximum borrowing limit, which was $2 billion in both 2021 and 2020. Long-term Borrowings Unsecured Debt On November 15, 2021, we redeemed our $200 million, 5.125 percent Senior Notes due April 5, 2022. The Senior Notes were redeemed at 101.39 percent of their principal amount, plus the accrued and unpaid interest thereon through the redemption date. As a result of the redemption, we recognized a $3 million loss on the transaction. On October 29, 2020, we issued at par an unsecured debt offering of $500 million of 4.20 percent Senior Notes due October 29, 2025. At December 31, 2021, the outstanding balance was $495 million. On November 1, 2021, we issued an unsecured debt offering of $500 million, 3.125 percent Senior Notes due November 2, 2026, at a price of 99.43 percent. At December 31, 2021, the outstanding balance was $491 million. Secured Financings 2021 Transactions On May 19, 2021, we executed our $531 million SMB Private Education Loan Trust 2021-B term ABS transaction, which was accounted for as a secured financing. We sold $531 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $529 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.26 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.77 percent. At December 31, 2021, $496 million of our Private Education Loans, including $467 million of principal and $29 million in capitalized interest, were encumbered because of this transaction. On August 18, 2021, we executed our $527 million SMB Private Education Loan Trust 2021-D term ABS transaction, which was accounted for as a secured financing. We sold $527 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $525 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.22 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.69 percent. At December 31, 2021, $515 million of our Private Education Loans, including $485 million of principal and $30 million in capitalized interest, were encumbered because of this transaction. On November 9, 2021, we executed our $534 million SMB Private Education Loan Trust 2021-E term ABS transaction, which was accounted for as a secured financing. We sold $534 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $532 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.15 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.69 percent. At December 31, 2021, $533 million of our Private Education Loans, including $502 million of principal and $31 million in capitalized interest, were encumbered because of this transaction. 2020 Transactions On February 12, 2020, we executed our $636 million SMB Private Education Loan Trust 2020-A term ABS transaction, which was accounted for as a secured financing. We sold $636 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $634 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.18 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.88 percent. At December 31, 2021, $496 million of our Private Education Loans, including $469 million of principal and $27 million in capitalized interest, were encumbered because of this transaction. On August 12, 2020, we executed our $707 million SMB Private Education Loan Trust 2020-B term ABS transaction, which was accounted for as a secured financing. We sold $707 million of notes to third-parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $705 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.14 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 1.30 percent. At December 31, 2021, $615 million of our Private Education Loans, including $581 million of principal and $34 million in capitalized interest, were encumbered because of this transaction. Pre-2020 Transactions Prior to 2020, we executed a total of $6.9 billion in ABS transactions that were accounted for as secured financings. At December 31, 2021, $3.6 billion of our Private Education Loans, including $3.5 billion of principal and $141 million in capitalized interest, were encumbered as a result of these transactions. The following table summarizes the outstanding long-term borrowings, the weighted average interest rates at the end of the period and the related average balance during the period. Rates reflect stated interest of borrowings and related discounts and premiums. The long-term borrowings amortize over time and mature serially from 2025 to 2053. December 31, 2021 Year Ended December 31, 2020 Year Ended (Dollars in thousands) Ending Balance Weighted Average Average Balance Ending Balance Weighted Average Average Balance Floating-rate borrowings $ 1,046,857 1.05 % $ 1,073,042 $ 1,235,105 1.09 % $ 1,432,446 Fixed-rate borrowings 4,884,133 2.65 4,094,640 3,954,112 3.08 3,316,425 Total long-term borrowings $ 5,930,990 2.37 % $ 5,167,682 $ 5,189,217 2.60 % $ 4,748,871 As of December 31, 2021, the stated maturity and maturity to call date of our brokered deposits and borrowings are summarized below. As of December 31, 2021 Stated Maturity (1) Maturity to Call Date Brokered Deposits Unsecured Debt Secured Borrowings Total Brokered Deposits Unsecured Debt Secured Borrowings Total Year of Maturity 2022 $ 2,918,335 $ — $ 718,153 $ 3,636,488 $ 2,918,335 $ — $ 718,153 $ 3,636,488 2023 2,033,829 — 698,078 2,731,907 2,033,829 — 698,078 2,731,907 2024 1,236,522 — 687,600 1,924,122 1,236,522 — 687,600 1,924,122 2025 270,174 500,000 648,315 1,418,489 270,174 500,000 648,315 1,418,489 2026 1,033,313 500,000 618,380 2,151,693 1,033,313 500,000 618,380 2,151,693 2027 and after 47,401 — 1,750,502 1,797,903 47,401 — 1,750,502 1,797,903 7,539,574 1,000,000 5,121,028 13,660,602 7,539,574 1,000,000 5,121,028 13,660,602 Hedge accounting adjustments 33,426 — — 33,426 33,426 — — 33,426 Total $ 7,573,000 $ 1,000,000 $ 5,121,028 $ 13,694,028 $ 7,573,000 $ 1,000,000 $ 5,121,028 $ 13,694,028 (1) We view our securitization trust debt as long-term based on the contractual maturity dates and projected principal paydowns based on our current estimates regarding loan prepayment speeds. The projected principal paydowns in year 2022 include $718 million related to the securitization trust debt. Secured Financings The following summarizes our secured financings issued in 2020 and 2021: Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (Dollars in thousands) Private Education Loans: 2020-A February 2020 $ 636,000 1-month LIBOR plus 0.88% 4.18 2020-B August 2020 707,000 1-month LIBOR plus 1.30% 4.14 Total notes issued in 2020 $ 1,343,000 Total loan and accrued interest amount securitized at inception in 2020 (2) $ 1,463,230 2021-B May 2021 $ 531,000 1-month LIBOR plus 0.77% 4.26 2021-D August 2021 527,000 1-month LIBOR plus 0.69% 4.22 2021-E November 2021 534,000 1-month LIBOR plus 0.69% 4.15 Total notes issued in 2021 $ 1,592,000 Total loan and accrued interest amount securitized at inception in 2021 $ 1,656,263 (1) Represents LIBOR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. (2) At December 31, 2021, $1.11 billion of our Private Education Loans, including $1.05 billion of principal and $62 million in capitalized interest, were encumbered related to the 2020 transactions. Consolidated Funding Vehicles We consolidate our financing entities that are VIEs as a result of our being the entities’ primary beneficiary. As a result, these financing VIEs are accounted for as secured borrowings. As of December 31, 2021 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 4,994,852 $ 4,994,852 $ 6,029,034 $ 210,741 $ 357,982 $ 6,597,757 Secured Borrowing Facility — — — — — 867 867 Total $ — $ 4,994,852 $ 4,994,852 $ 6,029,034 $ 210,741 $ 358,849 $ 6,598,624 As of December 31, 2020 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 4,496,338 $ 4,496,338 $ 5,661,123 $ 154,417 $ 356,967 $ 6,172,507 Secured Borrowing Facility — — — — — 436 436 Total $ — $ 4,496,338 $ 4,496,338 $ 5,661,123 $ 154,417 $ 357,403 $ 6,172,943 (1) Other assets primarily represent accrued interest receivable. Unconsolidated VIEs Private Education Loan Securitizations Unconsolidated VIEs include variable interests that we hold in certain securitization trusts created by the sale of our Private Education Loans to unaffiliated third-parties in the first quarter of 2020 and the first six months of 2021. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales, and we are also the administrator of these trusts. Additionally, we own five percent of the securities issued by the trusts in order to meet risk retention requirements. We were not required to consolidate these entities because while as servicer we may have a significant impact on economic performance, the risk of absorbing losses that could be significant is low. 2021-A Transaction On February 9, 2021, we closed an SMB Private Education Loan Trust 2021-A term ABS transaction (the “2021-A Transaction”), in which the unaffiliated third-party sold to the trust approximately $2.5 billion of Private Education Loans that the third-party seller previously purchased from us on January 8, 2021. In the 2021-A Transaction, we were the sponsor, servicer and administrator, and the seller of an additional $130 million of Private Education Loans into the trust. The sale of such additional loans qualified for sale treatment and removed these loans from our balance sheet on the settlement date of the 2021-A Transaction and we recorded an $18 million gain on sale associated with this transaction. In connection with the 2021-A Transaction settlement, we retained a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitization). We classified those vertical risk retention interests related to the 2021-A Transaction as available-for-sale investments, except for the interest in the residual class, which we classified as a trading investment recorded at fair value with changes recorded through earnings. 2021-C Transaction On May 27, 2021, we closed an SMB Private Education Loan Trust 2021-C term ABS transaction (the “2021-C Transaction”), in which the unaffiliated third-party sold to the trust approximately $505 million of Private Education Loans that the third-party seller previously purchased from us on January 8, 2021. In the 2021-C Transaction, we were the sponsor, servicer and administrator, and the seller of an additional $27 million of Private Education Loans into the trust. The sale of such additional loans qualified for sale treatment and removed these loans from our balance sheet on the settlement date of the 2021-C Transaction and we recorded an $4 million gain on sale associated with this transaction. In connection with the 2021-C Transaction settlement, we retained a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitization). We classified those vertical risk retention interests related to the 2021-C Transaction as available-for-sale investments, except for the interest in the residual class, which we classified as a trading investment recorded at fair value with changes recorded through earnings. The table below provides a summary of our exposure related to our unconsolidated VIEs. 2021 2020 As of December 31, Debt Interests (1) Equity Interests (2) Total Exposure Debt Interests (1) Equity Interests (2) Total Exposure Private Education Loan term securitizations $ 192,245 $ 37,465 $ 229,710 $ 68,908 $ 16,923 $ 85,831 (1) Vertical risk retention interest classified as available-for-sale investment. (2) Vertical risk retention interest classified as trading investment. Other Borrowing Sources We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $125 million at December 31, 2021. The interest rate we are charged on these lines of credit is priced at Fed Funds plus a spread at the time of borrowing, and is payable daily. We did not utilize these lines of credit in the years ended December 31, 2021 and 2020. We established an account at the FRB to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (the “Window”). The Primary Credit borrowing facility is a lending program available to depository institutions that are in generally sound financial condition. All borrowings at the Window must be fully collateralized. We can pledge asset-backed and mortgage-backed securities, as well as FFELP Loans and Private Education Loans, to the FRB as collateral for borrowings at the Window. Generally, collateral value is assigned based on the estimated fair value of the pledged assets. At December 31, 2021 and December 31, 2020, the value of our pledged collateral at the FRB totaled $3.3 billion and $3.8 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the years ended December 31, 2021 and 2020. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Strategy We maintain an overall interest rate risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate changes. Our goal is to manage interest rate sensitivity by modifying the repricing frequency and underlying index characteristics of certain balance sheet assets or liabilities so any adverse impacts related to movements in interest rates are managed within low to moderate limits. As a result of interest rate fluctuations, hedged balance sheet positions will appreciate or depreciate in market value or create variability in cash flows. Income or loss on the derivative instruments linked to the hedged item will generally offset the effect of this unrealized appreciation or depreciation or volatility in cash flows for the period the item is being hedged. We view this strategy as a prudent management of interest rate risk. Although we use derivatives to reduce the risk of interest rate changes, the use of derivatives does expose us to both market and credit risk. Market risk is the chance of financial loss resulting from changes in interest rates and market liquidity. Credit risk is the risk that a counterparty will not perform its obligations under a contract and it is limited to the loss of the fair value gain in a derivative that the counterparty owes us less collateral held and plus collateral posted. When the fair value of a derivative contract less collateral held and plus collateral posted is negative, we owe the counterparty and, therefore, we have no credit risk exposure to the counterparty; however, the counterparty has exposure to us. We minimize the credit risk in derivative instruments by entering into transactions with reputable counterparties that are reviewed regularly by our Credit Department. We also maintain a policy of requiring that all derivative contracts be governed by an International Swaps and Derivatives Association, Inc. Master Agreement. Depending on the nature of the derivative transaction, bilateral collateral arrangements are required as well. When we have more than one outstanding derivative transaction with the counterparty, and there exists legally enforceable netting provisions with the counterparty (i.e., a legal right to offset receivable and payable derivative contracts), the “net” mark-to-market exposure, less collateral held and plus collateral posted, represents exposure with the counterparty. We refer to this as the “net position.” When there is a net negative exposure, we consider our exposure to the counterparty and the net position to be zero. Title VII of the Dodd-Frank Act requires all standardized derivatives, including most interest rate swaps, to be submitted for clearing to central counterparties to reduce counterparty risk. Two of the central counterparties we use are the CME and the LCH. All variation margin payments on derivatives cleared through the CME and LCH are accounted for as legal settlement. As of December 31, 2021, $5.2 billion notional of our derivative contracts were cleared on the CME and $0.3 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 94.4 percent and 5.6 percent, respectively, of our total notional derivative contracts of $5.5 billion at December 31, 2021. For derivatives cleared through the CME and LCH, the net gain (loss) position includes the variation margin amounts as settlement of the derivative and not collateral against the fair value of the derivative. The amount of variation margin included as settlement as of December 31, 2021 was $(72) million and $8 million for the CME and LCH, respectively. Changes in fair value for derivatives not designated as hedging instruments are presented as realized gains (losses). Our exposure is limited to the value of the derivative contracts in a gain position less any collateral held and plus any collateral posted. When there is a net negative exposure, we consider our exposure to the counterparty to be zero. At December 31, 2021 and 2020, we had a net positive exposure (derivative gain positions to us, less collateral held by us and plus collateral posted with counterparties) related to derivatives of $9 million and $43 million, respectively. Accounting for Derivative Instruments The accounting for derivative instruments requires that every derivative instrument, including certain derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at fair value. Our derivative instruments are classified and accounted for by us as fair value hedges, cash flow hedges, and trading hedges. Fair Value Hedges We generally use fair value hedges to offset the exposure to changes in fair value of a recognized fixed-rate liability. We enter into interest rate swaps to economically convert fixed-rate liabilities into variable-rate liabilities. For fair value hedges, we generally consider all components of the derivative’s gain and/or loss when assessing hedge effectiveness and generally hedge changes in fair values due to interest rates. For fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in the same line item in the consolidated statements of income that is used to present the earnings effect of the hedged component of the hedged item. Cash Flow Hedges We use cash flow hedges to hedge the exposure to variability in cash flows of floating-rate liabilities. This strategy is used primarily to minimize the exposure to volatility in cash flows from future changes in interest rates. In assessing hedge effectiveness, generally all components of each derivative’s gains or losses are included in the assessment. We hedge exposure to changes in cash flows due to changes in interest rates or total changes in cash flow. For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income (loss). Those amounts are subsequently reclassified to earnings, in the same line item in the consolidated statements of income as impacted by the hedged item, when the hedged item affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate deposits. During the next twelve months, we estimate that $13 million will be reclassified as an increase to interest expense. Trading Activities When derivative instruments do not qualify for hedge accounting treatment, they are accounted for at fair value with all changes in fair value recorded through earnings. All of our derivative instruments entered into with maturities of less than three years are economically hedging risk, but do not receive hedge accounting treatment. Trading derivatives also include any hedges that originally received hedge accounting treatment, but lost hedge accounting treatment due to failed effectiveness testing, as well as the activity of certain derivatives prior to those derivatives receiving hedge accounting treatment. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at December 31, 2021 and 2020, and their impact on earnings and other comprehensive income for the years ended December 31, 2021, 2020, and 2019. Impact of Derivatives on the Consolidated Balance Sheets Cash Flow Hedges Fair Value Hedges Trading Total As of December 31, 2021 2020 2021 2020 2021 2020 2021 2020 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ — $ — $ 594 $ 5 $ 135 $ 5 $ 729 Other Other — — — — 1,317 — 1,317 — Derivative Liabilities: (2) Interest rate swaps Interest rate (231) (287) (21) — — — (252) (287) Total net derivatives $ (231) $ (287) $ (21) $ 594 $ 1,322 $ 135 $ 1,070 $ 442 (1) Fair values reported include variation margin as legal settlement of the derivative contract. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: As of December 31, Other Assets Other Liabilities 2021 2020 2021 2020 Gross position (1) $ 1,322 $ 729 $ (252) $ (287) Impact of master netting agreement (5) (176) 5 176 Derivative values with impact of master netting agreements (as carried on balance sheet) 1,317 553 (247) (111) Cash collateral pledged (2) 9,655 42,874 — — Net position $ 10,972 $ 43,427 $ (247) $ (111) __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2) Cash collateral pledged excludes amounts that represent legal settlement of the derivative contracts. Notional Values Cash Flow Fair Value Trading Total As of December 31, 2021 2020 2021 2020 2021 2020 2021 2020 Interest rate swaps $ 1,438,144 $ 1,018,976 $ 3,915,999 $ 4,845,543 $ 181,953 $ 2,693,364 $ 5,536,096 $ 8,557,883 Other — — — — 1,053,760 — 1,053,760 — Net total notional $ 1,438,144 $ 1,018,976 $ 3,915,999 $ 4,845,543 $ 1,235,713 $ 2,693,364 $ 6,589,856 $ 8,557,883 As of December 31, 2021 and 2020, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: As of December 31, Line Item in the Balance Sheet in Which the Hedged Item is Included: Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) 2021 2020 2021 2020 Deposits $ (3,963,268) $ (4,992,867) $ (50,784) $ (154,235) Impact of Derivatives on the Consolidated Statements of Income Years Ended December 31, 2021 2020 2019 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ 85,850 $ 71,668 $ (8,806) Hedged items recorded in interest expense 103,450 (91,087) (77,350) Derivatives recorded in interest expense (103,431) 91,419 77,177 Total $ 85,869 $ 72,000 $ (8,979) Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ (20,852) $ (16,000) $ 2,299 Total $ (20,852) $ (16,000) $ 2,299 Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ (23,216) $ 10,164 $ 19,469 Total (23,216) 10,164 19,469 Total $ 41,801 $ 66,164 $ 12,789 Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Years Ended December 31, 2021 2020 2019 Amount of gain (loss) recognized in other comprehensive income (loss) $ 27,259 $ (52,511) $ (36,115) Less: Amount of gain (loss) reclassified in interest expense (20,852) (16,000) 2,299 Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ 48,111 $ (36,511) $ (38,414) Cash Collateral As of December 31, 2021, cash collateral held and pledged excludes amounts that represent legal settlement of the derivative contracts held with the CME and LCH. There was no cash collateral held by us related to derivative exposure between us and our derivatives counterparties at December 31, 2021 and 2020, respectively. Collateral held is recorded in “Other Liabilities” on the consolidated balance sheets. Cash collateral pledged related to derivative exposure between us and our derivatives counterparties was $10 million and $43 million at December 31, 2021 and 2020, respectively. Collateral pledged is recorded in “Other interest-earning assets” on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock At December 31, 2021, we had 2.5 million shares of Floating-Rate Non-Cumulative Preferred Stock, Series B (the “Series B Preferred Stock”) outstanding. The Series B Preferred Stock does not have a maturity date, but can be redeemed at our option. Redemption would include any accrued and unpaid dividends for the then current quarterly dividend period, up to the redemption date. The shares have no preemptive or conversion rights and are not exchangeable for any of our other securities or property. Dividends are not mandatory and are paid quarterly, when, as, and if declared by the Board of Directors. Holders of Series B Preferred Stock are entitled to receive quarterly dividends based on 3-month LIBOR plus 170 basis points per annum in arrears. Upon liquidation or dissolution of the Company, holders of the Series B Preferred Stock are entitled to receive $100 per share, plus an amount equal to accrued and unpaid dividends for the then current quarterly dividend period, pro rata, and before any distribution of assets is made to holders of our common stock. In October 2020, we initiated a cash tender offer to purchase up to 2,000,000 shares of our Series B Preferred Stock. On November 30, 2020, we accepted for purchase 1,489,304 shares of the Series B Preferred Stock at a purchase price of $45 per share plus an amount equal to accrued and unpaid dividends, for an aggregate purchase price of approximately $68 million. Common Stock Our shareholders have authorized the issuance of 1.125 billion shares of common stock (par value of $0.20). At December 31, 2021, 279 million shares were issued and outstanding and 41 million shares were unissued but encumbered for outstanding stock options, restricted stock, restricted stock units, performance stock units, and dividend equivalent units for employee compensation and remaining authority for stock-based compensation plans. Common Stock Dividends In the year ended December 31, 2021, we paid a total common stock dividend of $0.20 per common share. In both years ended December 31, 2020 and 2019, we paid a total common stock dividend of $0.12 per common share, respectively. Common stock dividend declarations are subject to determination by, and the discretion of, our Board of Directors. We may change our common stock dividend policy at any time. We are dependent on funds obtained from the Bank to fund dividend payments. Regulatory and other legal restrictions may limit our ability to transfer funds freely, either to or from our subsidiaries. In particular, the Bank is subject to laws and regulations that authorize regulatory bodies to block or reduce the flow of funds to us, or that prohibit such transfers altogether in certain circumstances. These laws, regulations, and rules may hinder our ability to access funds that we may need to make payments in respect of our stock or to satisfy our other responsibilities. The FDIC has the authority to prohibit or limit the payment of dividends by the Bank and SLM Corporation. Share Repurchases The January 23, 2019 share repurchase program (the “2019 Share Repurchase Program”), which was effective upon announcement and expired on January 22, 2021, permitted us to repurchase from time to time shares of our common stock up to an aggregate repurchase price not to exceed $200 million. We have utilized all capacity under our 2019 Share Repurchase Program, having repurchased 17 million shares of common stock for $167 million in the year ended December 31, 2019 and 3 million shares of common stock for $33 million in the year ended December 31, 2020. On January 22, 2020, we announced another share repurchase program (the “2020 Share Repurchase Program”), which was effective upon announcement and expires on January 21, 2022, and permits us to repurchase shares of common stock from time to time up to an aggregate repurchase price not to exceed $600 million. Under the authority of the 2020 Share Repurchase Program, on March 10, 2020, we entered into an accelerated share repurchase agreement (“ASR”) with a third-party financial institution under which we paid $525 million for an upfront delivery of our common stock and a forward agreement. On March 11, 2020, the third-party financial institution delivered to us approximately 45 million shares. The final total actual number of shares of common stock delivered to us pursuant to the forward agreement was based generally upon a volume-weighted average price at which the shares of our common stock traded during the regular trading sessions on the NASDAQ Global Select Market during the term of the ASR. The transactions were accounted for as equity transactions and were included in treasury stock when the shares were received, at which time there was an immediate reduction in the weighted average common shares calculation for basic and diluted earnings per share. On January 26, 2021, we completed the ASR and upon final settlement on January 28, 2021, we received an additional 13 million shares. In total, we repurchased 58 million shares under the ASR at an average price per share of $9.01. Under the 2020 Share Repurchase Program, we also repurchased an additional 4 million shares of common stock for $75 million in the three months ended March 31, 2021. We have now utilized all capacity under the 2020 Share Repurchase Program. On January 27, 2021, we announced another share repurchase program (the “2021 Share Repurchase Program”), which was effective upon announcement and expires on January 26, 2023, and originally permitted us to repurchase shares of our common stock from time to time up to an aggregate repurchase price not to exceed $1.25 billion. On October 20 2021, we announced a $250 million increase in the amount of common stock that may be repurchased under our 2021 Share Repurchase Program, which expires on January 26, 2023. This is in addition to the original $1.25 billion of authorization announced on January 27, 2021, for a total 2021 Share Repurchase Program authorization of $1.5 billion. Of the total $1.5 billion 2021 Share Repurchase Program authorization, we repurchased 81.1 million shares of common stock for $1.46 billion in the year ended December 31, 2021. (Those amounts include the shares repurchased under the Tender Offer described below.) There was $38 million of capacity remaining under the 2021 Share Repurchase Program at December 31, 2021. On January 26, 2022, we announced a new share repurchase program (the “2022 Share Repurchase Program”), which was effective upon announcement and expires on January 25, 2024, and permits us to repurchase shares of our common stock from time to time up to an aggregate repurchase price not to exceed $1.25 billion. So long as there is unexpired capacity under a given repurchase program, repurchases under the programs may occur from time to time and through a variety of methods, including tender offers, open market repurchases, repurchases effected through Rule 10b5-1 trading plans, negotiated block purchases, accelerated share repurchase programs, or other similar transactions. The timing and volume of any repurchases under the 2021 Share Repurchase Program and the 2022 Share Repurchase Program will be subject to market conditions, and there can be no guarantee that the Company will repurchase up to the limit of the programs or at all. Common Stock Tender Offer On February 2, 2021, we announced the commencement of a “modified Dutch Auction” tender offer (the “Tender Offer”) to purchase up to $1 billion in aggregate purchase price of our outstanding shares of common stock, par value $0.20 per share. Pursuant to the Tender Offer, we repurchased 28.5 million shares at a price of $16.50 per share. The purchase of shares settled on March 16, 2021, for an aggregate cost of approximately $472 million, including fees and expenses related to the Tender Offer. We cancelled the 28.5 million shares purchased in connection with the Tender Offer. This cancellation decreased the balances of common stock by $6 million and of additional paid-in capital by $466 million, respectively. Share Repurchases under our Rule 10b5-1 Trading Plans During the year ended December 31, 2021, we repurchased 57 million shares of our common stock at a total cost of $1.1 billion under Rule 10b5-1 trading plans authorized under our share repurchase programs. The following table summarizes our common share repurchases and issuances associated with these programs. Years Ended December 31, 2021 2020 2019 Common stock repurchased under repurchase programs (1)(2)(3) 98,748,905 47,736,847 16,962,199 Average purchase price per share (4) $ 17.37 $ 9.66 $ 9.86 Shares repurchased related to employee stock-based compensation plans (5) 1,368,942 1,197,843 1,369,630 Average purchase price per share $ 14.70 $ 10.93 $ 10.85 Common shares issued (6) 3,786,581 3,129,325 3,743,705 (1) Common shares purchased under our share repurchase programs. There was $38 million of capacity remaining under the 2021 Share Repurchase Program at December 31, 2021. (2) For the years ended December 31, 2021 and 2020, the amount includes 13 million shares and 45 million shares, respectively, related to the accelerated share repurchase agreement described above. (3) For the year ended December 31, 2021, the amount includes 28.5 million shares related to the settlement of our common stock Tender Offer described above. (4) Average purchase price per share includes purchase commission costs. (5) Comprised of shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (6) Common shares issued under our various compensation and benefit plans. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings per Common Share Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Years ended December 31, (amounts in thousands, except per share data) 2021 2020 2019 Numerator: Net income $ 1,160,513 $ 880,690 $ 578,276 Preferred stock dividends 4,736 9,734 16,837 Net income attributable to SLM Corporation common stock $ 1,155,777 $ 870,956 $ 561,439 Denominator: Weighted average shares used to compute basic EPS 314,993 383,705 427,292 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, and Employee Stock Purchase Plan (“ESPP”) (1)(2) 4,919 3,490 3,382 Weighted average shares used to compute diluted EPS 319,912 387,195 430,674 Basic earnings per common share $ 3.67 $ 2.27 $ 1.31 Diluted earnings per common share $ 3.61 $ 2.25 $ 1.30 (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans and Arrangements | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans and Arrangements | Stock-Based Compensation Plans and Arrangements Plan Summaries As of December 31, 2021, we had one active stock-based compensation plan that provides for grants of equity awards to our employees and non-employee directors. The SLM Corporation 2021 Omnibus Incentive Plan was approved by shareholders on June 8, 2021, and at December 31, 2021, 21 million shares were authorized to be issued from this plan. We also maintain an Employee Stock Purchase Plan (the “ESPP”). The number of shares authorized under the plan at December 31, 2021 was 14 million shares. Shares issued under these stock-based compensation plans may be either shares reacquired by us or shares that are authorized but unissued. Stock-Based Compensation The total stock-based compensation cost recognized in the consolidated statements of income for the years ended December 31, 2021, 2020, and 2019 was $31 million, $36 million, and $31 million, respectively. As of December 31, 2021, there was $18 million of total unrecognized compensation expense related to unvested restricted stock awards, restricted stock units, performance stock units, and ESPP awards, which is expected to be recognized over a weighted average period of 1.4 years. We amortize compensation expense on a straight-line basis over the related vesting periods of each tranche of each award. Stock Options There were no stock options granted in the years ended December 31, 2020 and 2019. There were 998,891 time-vested options granted in the year ended December 31, 2021. The options were granted solely to members of senior management. The exercise price of the options is equal to 115 percent of the fair market value of a share of our common stock as of the grant date. The options will vest 100 percent on the third anniversary of the respective grant date and expire ten years after the respective grant date. The fair value of each stock option grant was estimated on the date of grant using the Monte Carlo simulation-pricing model. The expected volatility of our common stock at the date of grant is estimated based on a historic volatility rate and the expected option life is calculated based on historical stock option experience as the best estimate of future exercise patterns. The dividend yield assumption is based on historical and anticipated dividend payouts. The risk-free interest rate assumption is based on observed interest rates consistent with the expected life of each stock option grant. The following table summarizes stock option activity for the year ended December 31, 2021. (Dollars in thousands, shares and per share amounts in actuals) Number of Weighted Weighted Aggregate Intrinsic Value (1) Outstanding at December 31, 2020 241,675 $ 5.24 Granted 998,891 17.65 Exercised (2)(3) (236,275) 5.24 Canceled (5,400) 5.24 Outstanding at December 31, 2021 (4) 998,891 $ 17.65 2.0 $ 2,018 Exercisable at December 31, 2021 — $ — 0 $ — (1) The aggregate intrinsic value represents the total intrinsic value (the aggregate difference between our closing stock price on December 31, 2021 and the exercise price of in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2021. (2) The total intrinsic value of options exercised was $2 million, $3 million, and $4 million for the years ended December 31, 2021, 2020, and 2019, respectively. (3) No cash was received from option exercises for the year ended December 31, 2021. The actual tax benefit realized for the tax deductions from option exercises totaled less than $1 million for the year ended December 31, 2021. (4) For net-settled options, gross number is reflected. Restricted Stock Restricted stock awards generally vest over one year. Outstanding restricted stock is entitled to dividend equivalent units that vest subject to the same vesting requirements or lapse of transfer restrictions, as applicable, as the underlying restricted stock award. The fair value of restricted stock awards is based on our stock price at the grant date. The following table summarizes restricted stock activity for the year ended December 31, 2021. (Shares and per share amounts in actuals) Number of Weighted Non-vested at December 31, 2020 143,033 $ 7.69 Granted 54,098 20.33 Vested (1) (143,033) 7.69 Canceled (4,918) 20.33 Non-vested at December 31, 2021 (2) 49,180 $ 20.33 (1) The total fair value of shares that vested during the years ended December 31, 2021, 2020, and 2019 was $1 million, $1 million, and $1 million, respectively. (2) As of December 31, 2021, there was $0.4 million of unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 0.4 years. Restricted Stock Units and Performance Stock Units Restricted stock units (“RSUs”) and performance stock units (“PSUs”) are equity awards granted to employees that entitle the holder to shares of our common stock when the award vests. RSUs may be time-vested over three years or vested at grant but subject to transfer restrictions, while PSUs vest based on corporate performance targets at the end of a three-year period. Outstanding RSUs and PSUs are entitled to dividend equivalent units that vest subject to the same vesting requirements or lapse of transfer restrictions, as applicable, as the underlying award. The fair value of RSUs is based on our stock price at the grant date. The following table summarizes RSU and PSU activity for the year ended December 31, 2021. (Shares and per share amounts in actuals) Number of Weighted Outstanding at December 31, 2020 6,721,505 $ 10.41 Granted 1,673,427 15.51 Vested and converted to common stock (1) (2,944,877) 10.64 Canceled (141,559) 12.85 Outstanding at December 31, 2021 (2) 5,308,496 $ 11.83 (1) The total fair value of RSUs/PSUs that vested and converted to common stock during the years ended December 31, 2021, 2020, and 2019 was $31 million, $26 million, and $27 million, respectively. (2) As of December 31, 2021, there was $15 million of unrecognized compensation cost related to RSUs/PSUs, which is expected to be recognized over a weighted average period of 1.4 years. Employee Stock Purchase Plan Employees may purchase shares of our common stock at the end of a 12-month offering period at a price equal to the share price at the beginning of the 12-month period, less 15 percent, up to a maximum purchase price of $7,500 (whole dollars). The purchase price for each offering is determined at the beginning of the offering period on August 1. The fair values of the stock purchase rights of the ESPP offerings were calculated using a Black-Scholes option pricing model with the following weighted average assumptions: Years ended December 31, (per share amounts in actuals) 2021 2020 2019 Risk-free interest rate 0.07 % 0.12 % 1.87 % Expected volatility 34 % 49 % 29 % Expected dividend rate 0.66 % 1.76 % 1.34 % Expected life of the option 1 year 1 year 1 year Weighted average fair value of stock purchase rights $ 4.93 $ 1.74 $ 1.77 The expected volatility is based on implied volatility from publicly-traded options on our stock at the grant date and historical volatility of our stock consistent with the expected life. The risk-free interest rate is based on the zero-coupon U.S. Treasury STRIPS rate at the grant date consistent with the expected life. The fair values were amortized to compensation cost on a straight-line basis over a one-year vesting period. As of December 31, 2021, there was less than $1 million of unrecognized compensation cost related to the ESPP, which is expected to be recognized by July 2022. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use estimates of fair value in applying various accounting standards for the consolidated financial statements. We categorize our fair value estimates based on a hierarchal framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies — Fair Value Measurement.” The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis. Fair Value Measurements on a Recurring Basis 2021 2020 As of December 31, Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Trading investments $ — $ — $ 37,465 $ 37,465 $ — $ — $ 16,923 $ 16,923 Available-for-sale investments — 2,517,956 — 2,517,956 — 1,996,634 — 1,996,634 Derivative instruments — 1,322 — 1,322 — 729 — 729 Total $ — $ 2,519,278 $ 37,465 $ 2,556,743 $ — $ 1,997,363 $ 16,923 $ 2,014,286 Liabilities: Derivative instruments $ — $ (252) $ — $ (252) $ — $ (287) $ — $ (287) Total $ — $ (252) $ — $ (252) $ — $ (287) $ — $ (287) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. As of December 31, 2021 2020 Fair Carrying Difference Fair Carrying Difference Earning assets: Loans held for investment, net: Private Education Loans $ 22,919,836 $ 19,625,374 $ 3,294,462 $ 22,124,171 $ 18,436,968 $ 3,687,203 FFELP Loans 705,644 692,954 12,690 748,657 735,208 13,449 Credit Cards 25,037 22,955 2,082 12,249 10,967 1,282 Loans held for sale — — — 3,226,029 2,885,640 340,389 Cash and cash equivalents 4,334,603 4,334,603 — 4,455,292 4,455,292 — Trading investments 37,465 37,465 — 16,923 16,923 — Available-for-sale investments 2,517,956 2,517,956 — 1,996,634 1,996,634 — Accrued interest receivable 1,306,410 1,205,667 100,743 1,527,816 1,387,305 140,511 Tax indemnification receivable 8,047 8,047 — 18,492 18,492 — Derivative instruments 1,322 1,322 — 729 729 — Total earning assets $ 31,856,320 $ 28,446,343 $ 3,409,977 $ 34,126,992 $ 29,944,158 $ 4,182,834 Interest-bearing liabilities: Money-market and savings accounts $ 11,457,490 $ 11,432,691 $ (24,799) $ 11,136,560 $ 11,067,633 $ (68,927) Certificates of deposit 9,451,528 9,394,001 (57,527) 11,799,223 11,597,266 (201,957) Short-term borrowings — — — — — — Long-term borrowings 6,000,174 5,930,990 (69,184) 5,398,309 5,189,217 (209,092) Accrued interest payable 46,600 46,600 — 60,272 60,272 — Derivative instruments 252 252 — 287 287 — Total interest-bearing liabilities $ 26,956,044 $ 26,804,534 $ (151,510) $ 28,394,651 $ 27,914,675 $ (479,976) Excess of net asset fair value over carrying value $ 3,258,467 $ 3,702,858 The methods and assumptions used to estimate the fair value of each class of financial instruments are as follows: Cash and Cash Equivalents Cash and cash equivalents are carried at cost. Carrying value approximated fair value for disclosure purposes. These are level 1 valuations. Investments Trading Investments classified as trading are carried at fair value in the consolidated financial statements. As such, these are level 3 valuations. Available-for-Sale Investments classified as available-for-sale are carried at fair value in the consolidated financial statements. Investments in mortgage-backed securities, U.S. government-sponsored enterprises and Treasury securities, and Utah Housing Corporation bonds are valued using observable market prices of similar assets. As such, these are level 2 valuations. Loans Held For Investment and Accrued Interest Receivable Private Education Loans For Private Education Loans, fair value was determined by using observable quoted prices for similar assets in our most recent market transactions. Adjustments were then made to account for the value of loans in our portfolio that have materially different characteristics than those included in the most recent market transaction. These are considered level 2 valuations. A portion of the fair value that has been modeled is attributable to accrued interest receivable that has not yet been capitalized, and has been allocated to the accrued interest receivable line item. The remaining accrued interest receivable that will not be capitalized into the principal balance of the loan is carried at cost. FFELP Loans and Credit Cards For FFELP Loans and Credit Cards, the fair value was determined by modeling expected loan level cash flows using stated terms of the assets and internally developed assumptions to determine aggregate portfolio yield, net present value, and average life. The significant assumptions used to determine fair value are prepayment speeds, default rates, cost of funds, and required return on equity. Significant inputs into the model are not observable. However, we do calibrate the model based on market transactions when appropriate. As such, these are level 3 valuations. Loans Held For Sale Our loans held for sale are accounted for at the lower of cost or market. The fair value was determined by using observable quoted prices for similar assets in our most recent market transactions. These are considered level 2 valuations. Tax Indemnification Receivable Tax indemnification receivable is carried at cost. The carrying value approximates fair value. This is a level 2 valuation. Money Market and Savings Accounts Some of our MMDAs are fixed-rate deposits that are subject to minimum balances for a specified period of time. The fair values of these deposits are estimated using discounted cash flows based on rates currently offered for deposits of similar maturities. These are level 2 valuations. The fair values of our remaining money market and savings accounts equal the amounts payable on demand at the balance sheet date and are reported at their carrying value. These are level 1 valuations. Certificates of Deposit The fair values of CDs are estimated using discounted cash flows based on rates currently offered for deposits of similar remaining maturities. These are level 2 valuations. Accrued Interest Payable Accrued interest payable is carried at cost. The carrying value approximates fair value due to its short-term nature. This is a level 1 valuation. Borrowings Borrowings are accounted for at cost in the consolidated financial statements. The carrying value of short-term borrowings approximated fair value for disclosure purposes, due to the short-term nature of those borrowings. This is a level 1 valuation. The fair value of long-term borrowings is estimated using current market prices. This is a level 2 valuation. Derivatives All derivatives are accounted for at fair value in the consolidated financial statements. The fair value of derivative financial instruments was determined by a standard derivative pricing and option model using the stated terms of the contracts and observable market inputs. It is our policy to compare the derivative fair values to those received from our counterparties in order to evaluate the model’s outputs. When determining the fair value of derivatives, we take into account counterparty credit risk for positions where we are exposed to the counterparty on a net basis by assessing exposure net of collateral held. When the counterparty has exposure to us under derivative contracts with the Company, we fully collateralize the exposure (subject to certain thresholds). Interest rate swaps are valued using a standard derivative cash flow model with a LIBOR swap yield curve, which is an observable input from an active market. These derivatives are level 2 fair value estimates in the hierarchy. |
Arrangements with Navient Corpo
Arrangements with Navient Corporation | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Arrangements with Navient Corporation | Arrangements with Navient Corporation In connection with the Spin-Off, we entered into a Separation and Distribution Agreement with Navient (the “Separation and Distribution Agreement”). We also entered into various other ancillary agreements with Navient to effect the Spin-Off and provide a framework for our relationship with Navient thereafter, such as a transition services agreement, a tax sharing agreement, an employee matters agreement, a loan servicing and administration agreement, a joint marketing agreement, a key services agreement, a data sharing agreement, and a master sublease agreement. The majority of these agreements were transitional in nature with most having terms that have expired or will expire within the next year. We continue to have exposure to risks related to Navient’s creditworthiness. If we are unable to obtain indemnification payments from Navient, our results of operations and financial condition could be materially and adversely affected. Pursuant to the terms of the Spin-Off and applicable law, Navient is responsible for all liabilities (whether accrued, contingent, or otherwise and whether known or unknown) arising out of or resulting from the conduct of pre-Spin-Off SLM and its subsidiaries’ businesses prior to the Spin-Off, other than certain specifically identified liabilities relating to the conduct of our consumer banking business for which the Bank is responsible. Nonetheless, given the prior usage of the Sallie Mae and SLM names by entities now owned by Navient, we and our subsidiaries may from time to time be improperly named as defendants in legal proceedings where the allegations at issue are the legal responsibility of Navient. Most of these legal proceedings involve matters that arose in whole or in part in the ordinary course of business of pre-Spin-Off SLM. Likewise, as the period of time since the Spin-Off increases, so does the likelihood any allegations that may be made may be in part for our own actions in a post-Spin-Off time period and in part for Navient’s conduct in a pre-Spin-Off time period. We will not be providing information on these proceedings unless there are material issues of fact or disagreement with Navient as to the bases of the proceedings or responsibility therefor that we believe could have a material, adverse impact on our business, assets, financial condition, liquidity, or outlook if not resolved in our favor. We briefly summarize below some of the most significant agreements and relationships we continue to have with Navient. For additional information regarding the Separation and Distribution Agreement and the other ancillary agreements, see our Current Report on Form 8-K filed on May 2, 2014. Separation and Distribution Agreement The Separation and Distribution Agreement addresses, among other things, the following activities: • the obligation of each party to indemnify the other against liabilities retained or assumed by that party pursuant to the Separation and Distribution Agreement and in connection with claims of third-parties; • the allocation among the parties of rights and obligations under insurance policies; and • the creation of a governance structure by which matters related to the separation and other transactions contemplated by the Separation and Distribution Agreement are to be managed. The Separation and Distribution Agreement provides specific processes and procedures pursuant to which we may submit claims for indemnification to Navient. If for any reason Navient is unable or unwilling to pay claims made against it, our costs, operating expenses, cash flows, and financial condition could be materially and adversely affected over time. Indemnification Obligations Pursuant to the terms of the Separation and Distribution Agreement, and as contemplated by the structure of the Spin-Off, Navient is legally obligated to indemnify the Bank against all claims, actions, damages, losses, or expenses that may arise from the conduct of all activities of pre-Spin-Off SLM occurring prior to the Spin-Off, except for certain liabilities related to the conduct of the pre-Spin-Off consumer banking business that were specifically assumed by the Bank (and as to which the Bank is obligated to indemnify Navient). Some significant examples of the types of indemnification obligations Navient has under the Separation and Distribution Agreement and related ancillary agreements include: • Navient is required to indemnify the Company and the Bank for any liabilities, costs, or expenses they may incur arising from any action or threatened action related to the servicing, operations, and collections activities of pre-Spin-Off SLM and its subsidiaries with respect to Private Education Loans and FFELP Loans that were assets of the Bank or Navient at the time of the Spin-Off; provided that written notice was provided to Navient on or prior to April 30, 2017, the third anniversary date of the Spin-Off. Navient is not required to indemnify for changes in law or changes in prior existing interpretations of law that occur on or after April 30, 2014. • In connection with the Spin-Off, we recorded a liability related to uncertain tax positions of $27 million for which we are indemnified by Navient. As of December 31, 2021, the remaining balance of the indemnification receivable related to those uncertain tax positions was $5 million. Long-Term Arrangements The loan servicing and administration agreement governs the terms by which Navient provides servicing, administration, and collection services for the Bank’s portfolio of FFELP Loans, as well as servicing history information with respect to Private Education Loans previously serviced by Navient and access to certain promissory notes in Navient’s possession. The term of the loan servicing and administration agreement has been extended to April 30, 2022. The data sharing agreement provided us the right to obtain from Navient certain post-Spin-Off performance data relating to Private Education Loans owned or serviced by Navient to support and facilitate ongoing underwriting, originations, forecasting, performance, and reserve analyses. The term of the data sharing agreement expired on April 29, 2019, however. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Capital | Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the UDFI. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on our business, results of operations, and financial position. Under the FDIC’s regulations implementing the Basel III capital framework (“U.S. Basel III”) and the regulatory framework for prompt corrective action, the Bank must meet specific capital standards that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and its classification under the prompt corrective action framework are also subject to qualitative judgments by the regulators about components of capital, risk weightings, and other factors. The Bank is subject to the following minimum capital ratios under U.S. Basel III: a Common Equity Tier 1 risk-based capital ratio of 4.5 percent, a Tier 1 risk-based capital ratio of 6.0 percent, a Total risk-based capital ratio of 8.0 percent, and a Tier 1 leverage ratio of 4.0 percent. In addition, the Bank is subject to a Common Equity Tier 1 capital conservation buffer of greater than 2.5 percent. Failure to maintain the buffer will result in restrictions on the Bank’s ability to make capital distributions, including the payment of dividends, and to pay discretionary bonuses to executive officers. Including the buffer, the Bank is required to maintain the following capital ratios under U.S. Basel III in order to avoid such restrictions: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0 percent, a Tier 1 risk-based capital ratio of greater than 8.5 percent, and a Total risk-based capital ratio of greater than 10.5 percent. To qualify as “well capitalized” under the prompt corrective action framework for insured depository institutions, the Bank must maintain a Common Equity Tier 1 risk-based capital ratio of at least 6.5 percent, a Tier 1 risk-based capital ratio of at least 8.0 percent, a Total risk-based capital ratio of at least 10.0 percent, and a Tier 1 leverage ratio of at least 5.0 percent. Under regulations issued by the FDIC and other federal banking agencies, banking organizations that adopt CECL during the 2020 calendar year, including the Bank, may elect to delay for two years, and then phase in over the following three years, the effects on regulatory capital of CECL relative to the incurred loss methodology. The Bank has elected to use this option. Therefore, the regulatory capital impact of the Bank’s transition adjustments recorded on January 1, 2020 from the adoption of CECL, and 25 percent of the ongoing impact of CECL on the Bank’s allowance for credit losses, retained earnings, and average total consolidated assets, each as reported for regulatory capital purposes (collectively, the “adjusted transition amounts”), were deferred for the two-year period ending January 1, 2022. From January 1, 2022 to January 1, 2025, the adjusted transition amounts will be phased in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. The Bank’s January 1, 2020 CECL transition amounts increased our allowance for credit losses by $1.1 billion, increased the liability representing our off-balance sheet exposure for unfunded commitments by $116 million, and increased our deferred tax asset by $306 million, resulting in a cumulative effect adjustment that reduced retained earnings by $953 million. This transition adjustment was inclusive of qualitative adjustments incorporated into our CECL allowance as necessary, to address any limitations in the models used. The following capital amounts and ratios are based upon the Bank’s average assets and risk-weighted assets, as indicated. (Dollars in thousands) Actual U.S. Basel III Minimum Requirements Plus Buffer (1)(2) Amount Ratio Amount Ratio As of December 31, 2021: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,314,657 14.1 % $ 1,643,132 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,314,657 14.1 % $ 1,995,232 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,410,183 14.5 % $ 2,464,699 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,314,657 11.1 % $ 1,198,808 > 4.0 % As of December 31, 2020: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,579,005 14.0 % $ 1,794,780 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,579,005 14.0 % $ 2,179,375 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,849,820 15.0 % $ 2,692,169 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,579,005 11.3 % $ 1,264,424 > 4.0 % (1) Reflects the U.S. Basel III minimum required ratio plus the applicable capital conservation buffer. (2) The Bank’s regulatory capital ratios also exceeded all applicable standards for the Bank to qualify as “well capitalized” under the prompt corrective action framework. Bank Dividends |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plans | Defined Contribution Plans We participate in a defined contribution plan which is intended to qualify under section 401(k) of the Internal Revenue Code. The Sallie Mae 401(k) Savings Plan covers substantially all employees. After six months of service, we match 100 percent of the first five percent of contributions for eligible employees. For the years ended December 31, 2021, 2020, and 2019, we contributed $7 million, $8 million, and $7 million, respectively, to this plan. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments When we approve a Private Education Loan at the beginning of an academic year, that approval may cover the borrowing for the entire academic year. As such, we do not always disburse the full amount of the loan at the time of such approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). At December 31, 2021, we had $1.8 billion of outstanding contractual loan commitments which we expect to fund during the remainder of the 2021/2022 academic year. At December 31, 2021, we had a $73 million reserve recorded in “Other Liabilities” to cover expected losses that may occur during the one-year loss emergence period on these unfunded commitments. Regulatory Matters In May 2014, the Bank received a Civil Investigative Demand (“CID”) from the CFPB as part of the CFPB’s separate investigation relating to customer complaints, fees, and charges assessed in connection with the servicing of student loans and related collection practices of pre-Spin-Off SLM by entities now subsidiaries of Navient during a time period prior to the Spin-Off (the “CFPB Investigation”). Two state attorneys general also provided the Bank identical CIDs and other state attorneys general have become involved in the inquiry over time (collectively, the “Multi-State Investigation”). To the extent requested, the Bank has been cooperating fully with the CFPB and the attorneys general conducting the Multi-State Investigation. Given the timeframe covered by the CIDs, the CFPB Investigation and the Multi-State Investigation, and the focus on practices and procedures previously conducted by Navient and its servicing subsidiaries prior to the Spin-Off, Navient is leading the response to these investigations. Consequently, we have no basis from which to estimate either the duration or ultimate outcome of these investigations. With regard to the CFPB Investigation, we note that on January 18, 2017, the CFPB filed a complaint in federal court in Pennsylvania against Navient, along with its subsidiaries, Navient Solutions, Inc. and Pioneer Credit Recovery, Inc. The complaint alleges these Navient entities, among other things, engaged in deceptive practices with respect to their historic servicing and debt collection practices. Neither SLM, the Bank, nor any of their current subsidiaries are named in, or otherwise a party to, the lawsuit and are not alleged to have engaged in any wrongdoing. The CFPB’s complaint asserts Navient’s assumption of these liabilities pursuant to the Separation and Distribution Agreement. On January 18, 2017, the Illinois Attorney General filed a lawsuit in Illinois state court against Navient - its subsidiaries Navient Solutions, Inc., Pioneer Credit Recovery, Inc., and General Revenue Corporation - and the Bank arising out of the Multi-State Investigation. On March 20, 2017, the Bank moved to dismiss the Illinois Attorney General action as to the Bank, arguing, among other things, the complaint failed to allege with sufficient particularity or specificity how the Bank was responsible for any of the alleged conduct, most of which predated the Bank’s existence. On July 10, 2018, the Court granted the Bank’s motion to dismiss without prejudice. On August 7, 2018, the Illinois Attorney General filed a First Amended Complaint and, on October 9, 2018, the Bank again moved to dismiss the action based on grounds similar to those raised in its March 20, 2017 motion. The Illinois Attorney General filed its response on November 21, 2018, and the Bank filed its reply on December 10, 2018. Oral argument on the motion took place on January 9, 2019. The Court took the motion under advisement, and a hearing took place on December 7, 2021. On December 16, 2021, the Court entered an Order granting the Bank’s Motion to Dismiss the First Amended Complaint, thereby dismissing the Bank from the action with prejudice. On January 13, 2022, Navient announced agreements with a total of forty state attorneys general to resolve their previously disclosed multistate litigation and investigation matters, including but not limited to four lawsuits (brought by the attorneys general for the states of California, Washington, Pennsylvania, and New Jersey) arising out of the Multi-State Investigation. Neither SLM, the Bank, nor any of their current subsidiaries are named in, or otherwise a party to, the California, Washington, Pennsylvania, or New Jersey lawsuits, and no claims are asserted against them. The Company and the Bank are not parties to the Navient settlement and are not contributing any of the relief sought in the settlement. Further, the consent judgments between Navient and the various states contain releases of claims as to pre-Spin-Off SLM (including the Bank and other consolidated subsidiaries) for conduct occurring on or before the date of the Spin-Off. Pursuant to the terms of the Separation and Distribution Agreement, and as contemplated by the structure of the Spin-Off, Navient is legally obligated to indemnify the Bank against all claims, actions, damages, losses, or expenses that may arise from the conduct of all activities of pre-Spin-Off SLM occurring prior to the Spin-Off, except for certain liabilities related to the conduct of the pre-Spin-Off consumer banking business that were specifically assumed by the Bank (and as to which the Bank is obligated to indemnify Navient). Navient has acknowledged its indemnification obligations under the Separation and Distribution Agreement, in connection with the Multi-State Investigation and the related lawsuits in which the Bank has been named as a party. Navient has informed the Bank, however, that it believes that the Bank may be responsible to indemnify Navient against certain potential liabilities arising from the above-described lawsuits under the Separation and Distribution Agreement and/or a separate loan servicing agreement between the parties, and has suggested that the parties defer further discussion regarding indemnification obligations, and reimbursement of ongoing legal costs, in connection with the lawsuits. The Bank disagrees with Navient’s position and the Bank has reiterated to Navient that Navient is responsible for promptly indemnifying the Bank against all liabilities arising out of the conduct of pre-Spin-Off SLM that are at issue in the Multi-State Investigation and in the above-described lawsuits. Contingencies In the ordinary course of business, we and our subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings may be based on alleged violations of consumer protection, securities, employment, and other laws. In certain of these actions and proceedings, claims for substantial monetary damage may be asserted against us and our subsidiaries. It is common for the Company, our subsidiaries, and affiliates to receive information and document requests and investigative demands from state attorneys general, legislative committees, and administrative agencies. These requests may be for informational or regulatory purposes and may relate to our business practices, the industries in which we operate, or other companies with whom we conduct business. Our practice has been and continues to be to cooperate with these bodies and be responsive to any such requests. We are required to establish reserves for litigation and regulatory matters where those matters present loss contingencies that are both probable and estimable. When loss contingencies are not both probable and estimable, we do not establish reserves. Based on current knowledge, management does not believe there are loss contingencies, if any, arising from pending investigations, litigation, or regulatory matters for which reserves should be established. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow: Years ended December 31, 2021 2020 2019 Statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit 3.1 2.9 3.9 Business tax credits (0.8) (2.2) (3.5) Reverse federal impact of indemnification adjustments 0.1 0.2 0.3 Unrecognized tax benefits, U.S. federal and state, net of federal benefit 0.4 0.7 (0.1) Other, net 0.9 1.1 0.7 Effective tax rate 24.7 % 23.7 % 22.3 % The effective tax rate varies from the statutory U.S. federal rate of 21 percent primarily due to the impact of state taxes, net of federal benefit, for the year ended December 31, 2021; and due to business tax credits and the impact of state taxes, net of federal benefit, for the year ended December 31, 2020 and 2019, respectively. Income tax expense consists of: As of December 31, 2021 2020 2019 Current provision (benefit): Federal $ 259,536 $ 172,153 $ 150,800 State 64,843 28,387 24,378 Total current provision (benefit) 324,379 200,540 175,178 Deferred provision (benefit): Federal 47,240 58,003 (8,240) State 8,132 14,773 (1,474) Total deferred provision (benefit) 55,372 72,776 (9,714) Provision for income tax expense $ 379,751 $ 273,316 $ 165,464 The tax effect of temporary differences that give rise to deferred tax assets and liabilities is summarized below. As of December 31, 2021 2020 Deferred tax assets: Loan reserves $ 300,538 $ 356,296 Stock-based compensation plans 10,174 10,914 Deferred revenue 1,318 1,441 Operating loss carryovers 394 83 Accrued expenses not currently deductible 14,307 13,139 Net unrealized losses — 9,047 Unrecorded tax benefits 11,016 6,997 Other 1,097 1,003 Total deferred tax assets 338,844 398,920 Deferred tax liabilities: Fixed assets 10,131 11,098 Acquired intangible assets 8,710 7,767 Market value adjustments on student loans, investments and derivatives 33 5,651 Net unrealized gains 6,459 — Federal deferred for state receivable 1,921 7,456 Student loan premiums and discounts, net 12,396 11,336 Other 363 307 Total deferred tax liabilities 40,013 43,615 Net deferred tax assets $ 298,831 $ 355,305 Included in operating loss carryovers are state net operating losses of $286 million and $277 million as of December 31, 2021 and 2020, respectively. The Company has recorded a valuation allowance against these net operating losses of $285 million and $277 million, respectively. Also included in operating loss carryovers is a capital loss of $16 million and $16 million as of December 31, 2021 and 2020, respectively. The Company has recorded a full valuation allowance against this capital loss. The valuation allowance is primarily attributable to deferred tax assets for state net operating losses and capital losses that management believes is more likely than not to expire prior to being realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income of the appropriate character (i.e., capital or ordinary) during the period in which the temporary differences become deductible. Management considers, among other things, the scheduled reversals of deferred tax liabilities and the history of positive taxable income in evaluating the realizability of the deferred tax assets. Management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize our deferred tax assets (other than state net operating loss and capital loss carryovers as outlined above). As of December 31, 2021, the state net operating loss carryforwards will begin to expire in 2029 and the capital losses in 2025. Accounting for Uncertainty in Income Taxes The following table summarizes changes in unrecognized tax benefits: As of December 31, 2021 2020 2019 Unrecognized tax benefits at beginning of year $ 63,134 $ 53,509 $ 52,159 Increases resulting from tax positions taken during a prior period 1,496 12,723 12,333 Decreases resulting from tax positions taken during a prior period (1,481) (817) (851) Increases resulting from tax positions taken during the current period 20,743 7,815 4,572 Decreases related to settlements with taxing authorities (3,682) (148) (8,670) Increases related to settlements with taxing authorities 96 — — Reductions related to the lapse of statute of limitations (4,978) (9,948) (6,034) Unrecognized tax benefits at end of year $ 75,328 $ 63,134 $ 53,509 As of December 31, 2021, the gross unrecognized tax benefits are $75 million. Included in the $75 million are $65 million of unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate. As a part of the Spin-Off, the Company recorded a liability related to uncertain tax positions for which it is indemnified by Navient. See Note 2, “Significant Accounting Policies — Income Taxes,” for additional details. Tax-related interest and penalty expense is reported as a component of income tax expense. As of December 31, 2021, 2020, and 2019, the total amount of income tax-related accrued interest and penalties, net of related benefit, recognized in the consolidated balance sheets was $10 million, $11 million, and $12 million, respectively. For the years ended December 31, 2021, 2020, and 2019, the total amount of income tax-related accrued interest, net of related tax benefit, recognized in the consolidated statements of income was $(1) million, $(1) million, and $(1) million, respectively. The Company or one of its subsidiaries files income tax returns at the U.S. federal level and in most U.S. states. U.S. federal income tax returns filed for years 2014 and prior are no longer subject to examination. Various combinations of subsidiaries, tax years, and jurisdictions remain open for review, subject to statute of limitations periods (typically three four |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Our business is primarily focused on helping students and their families save, plan, and pay for college. We primarily originate, service, and/or collect loans made to students and their families to finance the cost of their education. We provide funding, delivery, and servicing support for education loans in the United States through our Private Education Loan program. Because of this concentration in one industry, we are exposed to credit, legislative/political/reputational, operational, regulatory, liquidity, capital, and interest rate risks associated with the student loan industry. Concentration Risk in the Revenues Associated with Private Education Loans We compete in the Private Education Loan market with banks and other consumer lending institutions, some with strong consumer brand name recognition and greater financial resources. We compete based on our products, origination capability, and customer service. To the extent our competitors compete aggressively or more effectively, we could lose market share to them or subject our existing loans to refinancing risk. Our product offerings may not prove to be profitable and may result in higher than expected losses. |
Parent Only Statements
Parent Only Statements | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Only Statements | Parent Only Statements The following parent company-only financial information should be read in conjunction with the other notes to the consolidated financial statements. The accounting policies for the parent company-only financial statements are the same as those used in the presentation of the consolidated financial statements, except that the parent company-only financial statements account for the parent company’s investments in its subsidiaries under the equity method. Parent Only Condensed Balance Sheets At December 31, (dollars in thousands) 2021 2020 Assets Cash and cash equivalents $ 570,726 $ 539,074 Total investments in subsidiaries (primarily Sallie Mae Bank) 2,527,780 2,689,027 Income taxes receivables, net — 1,835 Tax indemnification receivable 8,047 18,492 Due from subsidiaries, net 105,667 47,357 Other assets 3,361 2,457 Total assets $ 3,215,581 $ 3,298,242 Liabilities and Equity Liabilities Long-term borrowings $ 986,138 $ 692,879 Income taxes payable, net 34,822 — Payable due to Navient 101 8,531 Other liabilities 44,809 33,997 Total liabilities 1,065,870 735,407 Equity Preferred stock, par value $0.20 per share, 20 million shares authorized: Series B: 2.5 million and 2.5 million shares issued, respectively, at stated value of $100 per share 251,070 251,070 Common stock, par value $0.20 per share, 1.125 billion shares authorized: 432.0 million and 456.7 million shares issued, respectively 86,403 91,346 Additional paid-in capital 1,074,384 1,331,247 Accumulated other comprehensive loss (net of tax benefit of $(5,707) and $(10,908), respectively) (17,897) (34,200) Retained earnings 2,817,134 1,722,365 Total SLM Corporation stockholders’ equity before treasury stock 4,211,094 3,361,828 Less: Common stock held in treasury at cost: 153.1 million and 81.4 million shares, respectively (2,061,383) (798,993) Total equity 2,149,711 2,562,835 Total liabilities and equity $ 3,215,581 $ 3,298,242 Parent Only Condensed Statements of Income Years ended December 31, (dollars in thousands) 2021 2020 2019 Interest income $ 392 $ 452 $ 2,663 Interest expense 35,208 14,896 11,060 Net interest loss (34,816) (14,444) (8,397) Non-interest income (loss) (13,078) 2,820 (10,856) Non-interest expenses 54,352 57,945 39,423 Loss before income tax benefit and equity in net income from subsidiaries (102,246) (69,569) (58,676) Income tax expense (benefit) 8,477 (11,235) (25,260) Equity in net income from subsidiaries (primarily Sallie Mae Bank) 1,271,236 939,024 611,692 Net income 1,160,513 880,690 578,276 Preferred stock dividends 4,736 9,734 16,837 Net income attributable to SLM Corporation common stock $ 1,155,777 $ 870,956 $ 561,439 Parent Only Condensed Statement of Cash Flows Years ended December 31, (dollars in thousands) 2021 2020 2019 Cash flows from operating activities: Net income $ 1,160,513 $ 880,690 $ 578,276 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Undistributed earnings of subsidiaries (1,271,236) (939,024) (611,692) Dividends received from Sallie Mae Bank 1,444,500 579,400 254,000 Reduction of tax indemnification receivable 10,445 9,066 11,649 Amortization of unsecured debt upfront fees 2,663 1,029 811 Loss on early extinguishment of unsecured debt 2,784 — $ — Gain on sale of Upromise subsidiary, net — (11,331) — Decrease in investment in subsidiaries, net 34,935 53,698 2,611 (Increase) decrease in due from subsidiaries, net (58,310) (4,813) 6,254 Increase in other assets (16,964) (10,504) (12,999) Increase (decrease) in income taxes payable, net 36,657 (13,292) (25,814) Decrease in payable due to entity that is a subsidiary of Navient (8,430) (533) (416) Increase (decrease) in other liabilities 2,165 12,874 (5,796) Total adjustments 179,209 (323,430) (381,392) Net cash provided by operating activities 1,339,722 557,260 196,884 Cash flows from investing activities: Proceeds from the sale of Upromise subsidiary, net — 16,922 — Net cash provided by investing activities — 16,922 — Cash flows from financing activities: Issuance costs for unsecured debt offering (1,540) (1,309) — Unsecured debt issued 492,135 495,000 — Unsecured debt repaid (202,784) — — Repurchase of Series B Preferred Stock — (68,055) — Common stock dividends paid (60,462) (46,351) (51,114) Preferred stock dividends paid (4,736) (9,734) (16,837) Common stock repurchased (1,530,683) (558,167) (167,201) Net cash used in financing activities (1,308,070) (188,616) (235,152) Net increase (decrease) in cash and cash equivalents 31,652 385,566 (38,268) Cash and cash equivalents at beginning of year 539,074 153,508 191,776 Cash and cash equivalents at end of year $ 570,726 $ 539,074 $ 153,508 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Selected Quarterly Financial Information (unaudited) 2021 (Dollars in thousands, except per share data) First Second Third Fourth Quarter Quarter Quarter Quarter Net interest income $ 331,114 $ 338,784 $ 357,518 $ 367,350 Less: provisions for credit losses (225,767) 69,677 138,442 (15,309) Net interest income after provisions for credit losses 556,881 269,107 219,076 382,659 Gains (losses) on sales of loans, net 399,111 3,679 (10) 145,535 Gains (losses) on derivative and hedging activities, net 28 89 44 (17) Other income 14,288 48,580 13,879 7,243 Total operating expenses 124,499 128,010 140,649 125,495 Total restructuring expenses 1,077 70 108 — Income tax expense 203,525 53,174 19,392 103,660 Net income 641,207 140,201 72,840 306,265 Preferred stock dividends 1,201 1,192 1,166 1,177 Net income attributable to SLM Corporation common stock $ 640,006 $ 139,009 $ 71,674 $ 305,088 Basic earnings per common share (1) $ 1.77 $ 0.45 $ 0.24 $ 1.06 Diluted earnings per common share (1) $ 1.75 $ 0.44 $ 0.24 $ 1.04 Declared dividends per common share $ 0.03 $ 0.03 $ 0.03 $ 0.11 (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. 2020 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 400,116 $ 348,775 $ 364,567 $ 366,537 Less: provisions for credit losses 61,258 351,887 (3,640) (316,372) Net interest income (loss) after provisions for credit losses 338,858 (3,112) 368,207 682,909 Gains (losses) on sales of loans, net 238,935 (369) (4) (247) Gains (losses) on derivative and hedging activities, net 45,672 3,751 (15) 136 Other income 7,487 25,412 9,646 1,043 Total operating expenses 147,298 141,557 127,490 121,743 Total restructuring expenses — — 24,127 2,088 Income tax expense (benefit) 121,481 (30,664) 55,189 127,310 Net income (loss) 362,173 (85,211) 171,028 432,700 Preferred stock dividends 3,464 2,478 2,058 1,734 Net income (loss) attributable to SLM Corporation common stock $ 358,709 $ (87,689) $ 168,970 $ 430,966 Basic earnings (loss) per common share (1) $ 0.88 $ (0.23) $ 0.45 $ 1.15 Diluted earnings (loss) per common share (1) $ 0.87 $ (0.23) $ 0.45 $ 1.13 Declared dividends per common share $ 0.03 $ 0.06 $ — $ 0.03 (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 26, 2022, we signed a definitive agreement with Epic Research LLC to purchase the assets primarily used or held for use of Epic Research Education Services, LLC, which does business as Nitro College (“Nitro”). Nitro provides resources that help students and families evaluate how to responsibly pay for college and manage their financial responsibilities after graduation. Nitro takes pride in equipping college students and their parents with the necessary tools to navigate college financing, manage their debt, and obtain scholarship opportunities. In addition to providing a scholarship finder, Nitro provides FAFSA application support, information on grants, and calculators to help college students determine the potential return on investment from a college degree. The addition of Nitro will support the our mission of providing students with the confidence needed to successfully navigate the higher education journey. Strategically, we expect the acquisition of the Nitro assets, including its employees and intellectual property, when complete, to immediately expand our digital marketing capabilities, reduce the cost to acquire customer accounts, and accelerate our progress to become a broader education solutions provider for students before, during, and immediately after college. We have had a partnership with Nitro since 2017, and it has been a source of Private Education Loan leads during this period. The transaction is subject to customary approvals and closing conditions and is expected to close in the first quarter of 2022. Terms of the purchase are not being disclosed, but the purchase price is not material to the Company. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The financial reporting and accounting policies of SLM Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Key accounting policies that include significant judgments and estimates include the valuation of allowance for credit losses. |
Consolidation | Consolidation The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash held in the Federal Reserve Bank of San Francisco (the “FRB”) and commercial bank accounts, and other short-term liquid instruments with original maturities of three months or less. Fees associated with investing cash and cash equivalents are amortized into interest income using the effective interest rate method. |
Trading and Available-for-Sale Investments | Trading Investments We periodically sell Private Education Loans through securitization transactions where we are required to retain a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitizations). We classified those vertical risk retention interests related to the transactions as available-for-sale investments, except for the interest in the residual classes, which we classified as trading investments recorded at fair value with changes recorded through earnings. Available-for-Sale Investments Investments consisted of mortgage-backed securities, Utah Housing Corporation bonds, and U.S. government-sponsored enterprises and Treasury securities. We record our investment purchases and sales on a trade date basis. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Our investments are classified as available-for-sale and reported at fair value. Unrealized gains or losses on available-for-sale investments are recorded in equity and reported as a component of other comprehensive income (loss), net of applicable income taxes. |
Other Investments | Other InvestmentsWe hold investments in non-marketable securities and account for these investments at cost, less impairment, plus or minus observable price changes of identical or similar securities of the same issuer. |
Loans Held for Investment | Loans Held for Investment Loans, consisting of Private Education Loans, FFELP Loans, and our suite of credit cards (“Credit Cards”) that we have the ability and intent to hold for the foreseeable future, are classified as held for investment, and are carried at amortized cost. Amortized cost includes the unamortized premiums, discounts, and capitalized origination costs and fees, all of which are amortized to interest income as discussed under “Loan Interest Income.” Loans which are held for investment are reported net of an allowance for credit losses. |
Loans Held for Sale | Loans Held for Sale Any loans we have not classified as held for investment are classified as held-for-sale and are carried at the lower of cost or fair value. Loans are classified as held-for-sale when we have the intent and ability to sell such loans. Loans which are held-for-sale do not have the associated premium, discount, and capitalized origination costs and fees amortized into interest income. When a decision has been made to sell loans not previously classified as held for sale, such loans are transferred into the held-for-sale classification and carried at the lower of amortized cost basis (which excludes any allowance for credit losses) or fair value. At the time of the transfer to the held-for-sale classification, any amount by which the amortized cost basis exceeds fair value is accounted for as a valuation allowance. In addition, once a loan is classified as held-for-sale, we reverse any allowance for loan loss applicable to these loans. As market conditions permit, we may sell or securitize loans as a source of financing for other loans. Due to varying structuring terms, certain transactions may qualify for sale treatment while others do not qualify for sale treatment and are recorded as financings. All of our education loans are initially categorized as held for investment. It is only when we have selected the loans to sell or securitize and the transaction qualifies as a sale that we transfer the loans into the held-for-sale classification and carry them at the lower of cost or fair value. If we anticipate recognizing a gain related to the impending securitization or sale, then the fair value of the loans is higher than their respective cost basis and no valuation allowance is recorded. |
Restricted Cash | Restricted CashRestricted cash primarily includes amounts held in student loan securitization trusts and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the trust assets and when principal and interest is paid on trust liabilities. |
Allowance For Credit Losses | Allowance for Credit Losses Adoption of CECL On January 1, 2020, we adopted the Financial Accounting Standards Board’s (“FASB’s”) Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”). Under this guidance, for all loans carried at amortized cost, upon loan origination we are required to measure our allowance for credit losses based on our estimate of all current expected credit losses over the remaining contractual term of the assets. Updates to that estimate each period are recorded through provision expense. The estimate of loan losses must be based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU does not mandate the use of any specific method for estimating credit loss, permitting companies to use judgment in selecting the approach that is most appropriate in their circumstances. Adoption of the standard had a material impact on how we record and report our financial condition and results of operations, and on regulatory capital. The following table illustrates the impact of the cumulative effect adjustment made upon adoption of CECL on January 1, 2020: January 1, 2020 (Dollars in thousands) As reported under CECL Pre-CECL Adoption Impact of CECL Adoption Assets: Allowance for credit losses: Private Education Loans $ 1,435,130 $ 374,300 $ 1,060,830 FFELP Loans 4,485 1,633 2,852 Personal Loans 145,060 65,877 79,183 Credit Cards 290 102 188 Total $ 1,584,965 $ 441,912 $ 1,143,053 Deferred tax asset $ 415,540 $ 109,369 $ 306,171 Liabilities: Allowance for credit losses: Off-balance sheet exposures $ 118,239 $ 2,481 $ 115,758 Equity: Retained Earnings $ 897,873 $ 1,850,512 $ (952,639) This transition adjustment shown above is inclusive of qualitative adjustments incorporated into our CECL allowance as necessary, to address any limitations in the models used. Under regulations issued by the FDIC and other federal banking agencies, banking organizations that adopt CECL during the 2020 calendar year, including the Bank, may elect to delay for two years, and then phase in over the following three years, the effects on regulatory capital of CECL relative to the incurred loss methodology. The Bank has elected to use this option. Therefore, the regulatory capital impact of the Bank’s transition adjustments recorded on January 1, 2020 from the adoption of CECL, and 25 percent of the ongoing impact of CECL on the Bank’s allowance for credit losses, retained earnings, and average total consolidated assets, each as reported for regulatory capital purposes (collectively, the “adjusted transition amounts”), were deferred for the two-year period ending January 1, 2022. From January 1, 2022 to January 1, 2025, the adjusted transition amounts will be phased in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. For additional information, see Note 18, “Regulatory Capital.” Allowance for Credit Losses - 2021 and 2020 We maintain an allowance for credit losses for the lifetime expected credit losses on loans in our portfolios, as well as for future loan commitments, at the reporting date. In determining the lifetime expected credit losses on our Private Education Loan portfolio loan segments, we use a discounted cash flow model. This method requires us to project future principal and interest cash flows on our loans in those portfolios. To estimate the future expected cash flows, we use a vintage-based model that considers life of loan loss expectations, prepayments (both voluntary and involuntary), defaults, recoveries, and any other adjustments deemed necessary, to determine the adequacy of the allowance at each balance sheet date. These cash flows are discounted at the loan’s effective interest rate to calculate the present value of those cash flows. Management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The difference between the present value of those cash flows and the amortized cost basis of the underlying loans is the allowance for credit losses. Entities that measure credit losses based on the present value of expected future cash flows are permitted to report the entire change in present value as credit loss expense, but may alternatively report the change in present value due to the passage of time as interest income. We have elected to report the entire change in present value as credit loss expense. In determining the loss rates used for the vintage-based approach, we start with our historical loss rates, stratify the loans within each vintage, and then adjust the loss rates based upon economic factors forecasted over a reasonable and supportable forecast period. The reasonable and supportable forecast period is meant to represent the period in which we believe we can estimate the impact of forecasted economic factors in our expected losses. At the end of the reasonable and supportable forecast period, we immediately revert our forecast of expected losses to our historical averages. We use a two-year reasonable and supportable forecast period, although this period is subject to change as our view evolves on our ability to reasonably forecast economic conditions to estimate future losses. In estimating our current expected credit losses, we use a combination of expected economic scenarios coupled with our historical experience to derive a base case adjusted for any qualitative factors (as described below). We also develop an adverse and favorable economic scenario. At each reporting date, we determine the appropriate weighting of these alternate scenarios based upon the current economic conditions and our view of the risks of alternate outcomes. This weighting of expectations is used in calculating our current expected credit losses recorded each period. In estimating recoveries, we use both estimates of what we would receive from the sale of defaulted loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. We use historical experience and economic forecasts to estimate future prepayment speeds. As with our loss forecasts, at the end of the two-year reasonable and supportable forecast for prepayments, we immediately revert to our historical long-term prepayment rates. In addition to the above modeling approach, we also take certain other qualitative factors into consideration when calculating the allowance for credit losses. These qualitative factors include, but are not limited to, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not already included in the analysis, and the effect of other external factors such as legal and regulatory requirements on the level of estimated current expected credit losses. The evaluation of the allowance for credit losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. If actual future performance in delinquency, charge-offs, and recoveries is significantly different than estimated, or management assumptions or practices were to change, this could materially affect the estimate of the allowance for credit losses, the timing of when losses are recognized, and the related provision for credit losses on our consolidated statements of income. When calculating our allowance for credit losses and liability for unfunded commitments, we incorporate several inputs that are subject to change period to period. These include, but are not limited to, CECL model inputs and any overlays deemed necessary by management. The most impactful CECL model inputs include: • Economic forecasts; • Weighting of economic forecasts; • Prepayment speeds; and • Recovery rates. |
Allowance for Private Education Loan Losses | Allowance for Private Education Loan Losses - 2021 and 2020 In addition to the key assumptions/estimates described above, some estimates are unique to our Private Education Loan portfolio. Estimates are made on our Private Education Loans regarding when each borrower will separate from school. The cash flow timing of when a borrower will begin making full principal and interest payments is dependent upon when the student either graduates or leaves school. These dates can change based upon many factors. We receive information regarding projected graduation dates from a third-party clearinghouse. The separation from school date is updated quarterly based on updated information received from the clearinghouse. Additionally, when we have a contractual obligation to fund a loan or a portion of a loan at a later date, we make an estimate regarding the percentage of this obligation that will be funded. This estimate is based on historical experience. For unfunded commitments, we recognize the related life of loan allowance as a liability. Once the loan is funded, that liability transfers to the allowance for Private Education Loan losses. Key Credit Quality Indicators - Private Education Loans - 2021 and 2020 We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit score at original approval and periodically refreshed/updated credit scores through the loan’s term, existence of a cosigner, loan status, and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for credit losses. Credit scores are an indicator of the creditworthiness of borrowers and the higher the credit scores the more likely it is the borrowers will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than a current loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default as well. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for credit losses on a quarterly basis. We collect on defaulted loans through a mix of in-house collectors, third-party collectors, and sales to third-parties. For December 31, 2021 and 2020, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted loans to estimate the timing and amount of future recoveries on charged-off loans. Private Education Loans generally do not require borrowers to begin principal and interest repayment until at least six months after the borrowers have graduated or otherwise separated from school. Consequently, the loss estimates for these loans are generally low while the borrower is in school and then increase upon the end of the grace period after separation from school. At both December 31, 2021 and 2020, 24 percent of the principal balance of the Private Education Loan portfolio was related to borrowers who were then in an in-school (fully deferred), grace, or other deferment status and not required to make payments. Our collection policies for Private Education Loans allow for periods of nonpayment for certain borrowers requesting an extended grace period upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance and is considered in estimating the allowance for credit losses. As part of concluding on the adequacy of the allowance for credit losses for Private Education Loans, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance as a percentage of ending total loans, delinquency percentages, and forbearance percentages. |
Troubled Debt Restructurings ("TDRs") | Troubled Debt Restructurings (“TDRs”) - 2021 and 2020 In estimating the expected defaults for our Private Education Loans that are considered TDRs, we follow the same discounted cash flow process described above but use the historical loss rates related to past TDR loans. The appropriate gross loss rates are determined for each individual loan by evaluating loan maturity, risk characteristics, and macroeconomic conditions. The allowance for our TDR portfolio is included in our overall allowance for Private Education Loans. Our TDR portfolio is comprised mostly of loans with interest rate reductions and loans with forbearance usage greater than three months, as further described below. We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations, achieve better student outcomes, and increase the collectability of the loans. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. When we give a borrower facing financial difficulty an interest rate reduction, we temporarily reduce the rate (currently to 4.0 percent) for a two-year period and, in the vast majority of cases, permanently extend the final maturity of the loan. The combination of these two loan term changes helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. We classify a loan as a TDR due to forbearance using a two-step process. The first step is to identify a loan that was in full principal and interest repayment status and received more than three months of forbearance in a 24-month period; however, during the first nine months after a loan had entered full principal and interest repayment status, we do not count up to the first six months of forbearance received during that period against the three-month policy limit. The second step is to evaluate the creditworthiness of the loan by examining its most recent refreshed FICO score. Loans that have met the criteria in the first test and have a FICO score above a certain threshold (based on the most recent quarterly FICO score refresh) will not be classified as TDRs. Loans that have met the criteria in the first test and have a FICO score under the threshold (based on the most recent quarterly FICO score refresh) will be classified as TDRs. A loan also becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate reduction is temporary). Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. About half our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. As of both December 31, 2021 and 2020, approximately 47 percent of TDRs were classified as such due to their forbearance status. For additional information, see Note 7, “Allowance for Credit Losses.” On March 27, 2020, then President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which, among other things, allows us to (i) elect to suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as TDRs, and (ii) suspend any determination of a loan modified as a result of the effects of COVID-19 as being a TDR, including impairment for accounting purposes. Furthermore, on December 27, 2020, the Consolidated Appropriations Act, 2021 (the “CAA”) was signed into law. The CAA provides for additional COVID-19 focused relief and extends certain provisions of the CARES Act. |
Off-Balance Sheet Exposure for Contractual Loan Commitments | Off-Balance Sheet Exposure for Contractual Loan Commitments - 2021 and 2020 When we approve a Private Education Loan at the beginning of an academic year, that approval may cover the borrowing for the entire academic year. As such, we do not always disburse the full amount of the loan at the time of such approval, but instead have a commitment to fund a portion of the loan at a later date (usually the start of the second semester or subsequent trimesters). We estimate expected credit losses over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. The discounted cash flow approach described above includes expected future contractual disbursements. The portion of the allowance for credit losses related to future disbursements is shown as a liability on the face of the balance sheet, and related provision for credit losses is reflected on the income statement. Uncollectible Interest - 2021 and 2020 |
Allowance For Credit Card Loans | Allowance for Credit Card Loans - 2021 and 2020 We use the gross loss approach when estimating the allowance for credit losses for our Credit Card portfolio. Because our Credit Card portfolio is new and we do not have sufficient historical loss experience, we use estimated loss rates reported by other financial institutions to estimate our allowance for credit losses for Credit Cards, net of expected recoveries. In addition, we use a model that utilizes purchased credit card information with risk characteristics similar to those of our own portfolio as a challenger model. We then consider any qualitative factors that may change our future expectations of losses. |
Deposits | Deposits Our retail deposit accounts are principally certificates of deposit (“CDs”), money market deposit accounts (“MMDAs”), and high-yield savings (“HYS”) accounts. CDs are accounts that have a stipulated maturity and interest rate. Retail CDs may be withdrawn early, but a penalty is assessed. MMDA and HYS accounts are both interest and non-interest bearing accounts that have no maturity or expiration date. For retail MMDA and HYS accounts, the depositor may be required to give written notice of any intended withdrawal not less than seven days before the withdrawal is made. |
Fair Value Measurement | Fair Value Measurement We use estimates of fair value in applying various accounting standards for our financial statements. Fair value measurements are used in one of four ways: • In the consolidated balance sheet with changes in fair value recorded in the consolidated statement of income; • In the consolidated balance sheet with changes in fair value recorded in the accumulated other comprehensive income section of the consolidated statement of changes in equity; • In the consolidated balance sheet for instruments carried at lower of cost or fair value with impairment charges recorded in the consolidated statement of income; and • In the notes to the consolidated financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, our policy in estimating fair value is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads (including for our liabilities), relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. Transaction costs are not included in the determination of fair value. When possible, we seek to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels are as follows: • Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. The types of financial instruments included in level 1 are highly liquid instruments with quoted prices. • Level 2 — Inputs from active markets, other than quoted prices for identical instruments, are used to determine fair value. Significant inputs are directly observable from active markets for substantially the full term of the asset or liability being valued. • Level 3 — Pricing inputs significant to the valuation are unobservable. Inputs are developed based on the best information available. However, significant judgment is required by us in developing the inputs. |
Loan Interest Income | Loan Interest Income For all loans, including impaired loans (regardless of the delinquency status of the impaired loans), classified as held for investment, we recognize interest income as earned, adjusted for the amortization of deferred direct origination and acquisition costs. Deferred fees or costs are required to be recognized as yield adjustments over the life of the related loans and are recognized by the interest method. The objective of the interest method is to arrive at periodic interest income (including recognition of fees and costs) at a constant effective yield on the net investment in the receivable (i.e., the principal amount of the receivable adjusted by unamortized fees or costs, purchase premium or discount, and any hedging activity—these unamortized costs will collectively be referred to as “basis adjustments”). The difference between the periodic interest income so determined and the interest income determined by applying the stated interest rate to the outstanding principal amount of the receivable is the amount of periodic amortization of deferred direct origination and acquisition costs. For the amortization of the basis adjustments, we determine the constant effective yield necessary to apply the interest method based upon the contractual terms of the loan contract, with no consideration given to expected prepayments. For fixed-rate loans, when a prepayment occurs the unamortized balance of the basis adjustments is adjusted so that future amortization (based upon the contractual terms of the loan) will result in a constant effective yield equal to the original effective interest rate. Prepayments do not result in a change in the effective interest rate of the loan. We determine the contractual payments on a pool basis; as such, when a prepayment occurs, future contractual payments will be determined assuming the pool will make smaller payments through the original term of the contract. The adjustment to the unamortized basis adjustment balance is recorded in interest income. For variable-rate loans, the effective interest rate at the time of origination is the loan’s effective interest rate assuming all future contractual payments. The effective interest rate remains the same for that loan until the loan rate changes. If there is no prepayment and no change in the stated interest rate, the periodic amortization of the basis adjustments is equal to the difference between the effective interest rate multiplied by the book basis and the contractual interest due. We determine the contractual payments on a pool basis; as such, when a prepayment occurs, future contractual payments will be determined assuming the pool will make smaller payments through the original term of the contract. The adjustment to the unamortized basis adjustment balance is recorded in interest income. When the interest rate on a variable-rate loan changes, the effective interest rate is recalculated using the same methodology described in the previous paragraph; however, the future contractual payments are changed to reflect the new interest rate. There is no forecasting of future expected changes in interest rates. The accounting basis used to determine the effective interest rate of the cash flows is equal to the balances of the unpaid principal balance and unamortized basis adjustments at the time of the rate change. We also pay to the U.S. Department of Education (the “DOE”) an annual 105 basis point Consolidation Loan Rebate Fee on FFELP consolidation loans, which is netted against loan interest income. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy. We do not amortize any adjustments to the basis of loans when they are classified as held-for-sale. With the adoption of CECL on January 1, 2020, we continue to analyze the collectability of accrued interest associated with loans not currently in full principal and interest repayment status or interest-only repayment status as discussed above; however, we have changed the recognition of the allowance for this portion of uncollectible interest (amounts to be capitalized after separation from school and the expiration of the grace period) to the provisions for credit losses from our historical practice of recording it as a reduction of interest income, as well as classifying this allowance as part of our allowance for credit losses as opposed to our historical practice of recording it as a reduction of accrued interest income receivable. The allowance for the portion of uncollectible interest on loans making full interest payments will continue to be recorded as a reduction of interest income. As we maintain an allowance for uncollectible interest on loans making full interest payments and an allowance for credit losses for the interest on loans where all, or a portion of the interest, will be capitalized in the future, we do not place loans in nonaccrual status prior to charge-off. At December 31, 2021 and 2020, we had no loans in nonaccrual status. |
Interest Expense | Interest ExpenseInterest expense is based upon contractual interest rates adjusted for the amortization of issuance costs. We incur interest expense on interest-bearing deposits comprised of non-maturity savings deposits, brokered and retail CDs, and brokered and retail MMDAs, as well as on unsecured and secured financings. Interest expense is recognized when amounts are contractually due to deposit and debt holders and is adjusted for net payments/receipts related to interest rate swap agreements that qualify and are designated hedges of interest-bearing liabilities. Interest expense also includes the amortization of deferred gains and losses on closed hedge transactions that qualified as hedges. Amortization of debt issuance costs, premiums, discounts, and terminated hedge-basis adjustments are recognized using the effective interest rate method. We incur certain fees related to our Private Education Loan multi-lender secured borrowing facility (the “Secured Borrowing Facility”), including an unused Secured Borrowing Facility fee, and also incur fees related to our term asset-backed securities (“ABS”). These fees are included in interest expense. |
Gains on Sale of Loans, Net | Gains on Sale of Loans, NetWe may participate and sell loans to third-parties and affiliates, including entities that were related parties prior to the Spin-Off. These sales may occur through whole loan sales or securitization transactions that qualify for sales treatment. If a transfer of loans qualifies as a sale, we derecognize the loan and recognize a gain or loss as the difference between the carry basis of the loan sold and liabilities retained and the compensation received. We recognize the results of a transfer of loans based upon the settlement date of the transaction. These loans were initially recorded as held for investment and were transferred to held-for-sale immediately prior to sale or securitization. |
Other Income | Other Income Included in other income are late fees on both Private Education Loans and FFELP Loans, which we recognize when the cash has been received, fees related to our Credit Card program, income for servicing private student loans for third-parties, and changes to our tax indemnification receivable from Navient. |
Securitization Accounting | Securitization Accounting Our securitization transactions use a two-step structure with a special purpose entity VIE that legally isolates the transferred assets from us in the event of bankruptcy or receivership. Transactions receiving sale treatment are also structured to ensure that the holders of the beneficial interests issued are not constrained from pledging or exchanging their interests, and that we do not maintain effective control over the transferred assets. If these criteria are not met, then the transaction is accounted for as an on-balance sheet secured borrowing. If a securitization qualifies as a sale, we then assess whether we are the primary beneficiary of the securitization trust and are required to consolidate such trust. We are considered the primary beneficiary if we have both: (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. There can be considerable judgment as it relates to determining the primary beneficiary of the VIEs. There are no “bright line” tests. Rather, the assessment of who has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and who has the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE can be very qualitative and judgmental in nature. If we are the primary beneficiary, then no gain or loss is recognized. We have determined that as the servicer of Sallie Mae securitization trusts, we meet the first primary beneficiary criterion because we have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Irrespective of whether a securitization receives sale or on-balance sheet treatment, our continuing involvement with our securitization trusts is generally limited to: • Owning the equity certificates of certain trusts; • The servicing of the student loan assets within the securitization trusts, on both a pre- and post-default basis; • Our acting as administrator for the securitization transactions we sponsored; • Our responsibilities relative to representation and warranty violations; and • The option to exercise the clean-up call and purchase the student loans from the trust when the pool balance is 10 percent or less of the original pool balance. In 2021 and 2020, we executed several secured financing transactions. Based upon our relationships with these securitizations, we believe the consolidation assessment is straightforward. We consolidated our secured financing transactions because either we did not meet the accounting criterion for sales treatment or we determined we were the primary beneficiary of the VIE because we retained (i) the residual interest in the securitization and therefore had the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE, as well as (ii) the power to direct the activities of the VIE in our role as servicer. The investors in our securitization trusts have no recourse to our other assets should there be a failure of the trust to pay when due. Generally, the only recourse the securitization trusts have to us is in the event we breach a seller representation or warranty or our duties as master servicer and servicer, in which event we are obligated to repurchase the related loans from the trust. |
Derivative Accounting | Derivative Accounting We account for our derivatives, consisting of interest rate swaps, at fair value on the consolidated balance sheets as either an asset or liability. Derivative positions are recorded as net positions by counterparty based on master netting arrangements (see Note 12, “Derivative Financial Instruments”), exclusive of accrued interest and cash collateral held or pledged. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) requires all standardized derivatives, including most interest rate swaps, to be submitted for clearing to central counterparties to reduce counterparty risk. Two of the central counterparties we use are the Chicago Mercantile Exchange (the “CME”) and the London Clearing House (the “LCH”). All variation margin payments on derivatives cleared through the CME and LCH are accounted for as legal settlement. As of December 31, 2021, $5.2 billion notional of our derivative contracts were cleared on the CME and $0.3 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 94.4 percent and 5.6 percent, respectively, of our total notional derivative contracts of $5.5 billion at December 31, 2021. For derivatives cleared through the CME and LCH, the net gain (loss) position includes the variation margin amounts as settlement of the derivative and not collateral against the fair value of the derivative. The amount of variation margin included as settlement as of December 31, 2021 was $(72) million and $8 million for the CME and LCH, respectively. Changes in fair value for derivatives not designated as hedging instruments are presented as realized gains (losses). We determine the fair value for our derivative contracts primarily using pricing models that consider current market conditions and the contractual terms of the derivative contracts. These pricing models consider interest rates, time value, forward interest rate curves, and volatility factors. Inputs are generally from active financial markets. The accounting for derivative instruments requires that every derivative instrument, including certain derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at fair value. Our derivative instruments are classified and accounted for by us as fair value hedges, cash flow hedges, and trading hedges. Each derivative is designated to a specific (or pool of) liability(ies) on the consolidated balance sheets, and is designated as either a “fair value” hedge or a “cash flow” hedge. Fair value hedges are designed to hedge our exposure to the changes in fair value of a fixed-rate liability. For effective fair value hedges, both the hedge and the hedged item (for the risk being hedged) are recorded at fair value with any difference reflecting ineffectiveness recorded immediately in the consolidated statements of income. Cash flow hedges are designed to hedge our exposure to variability in cash flows related to variable-rate deposits. The assessment of the hedge’s effectiveness is performed at inception and on an ongoing basis, using regression testing. For hedges of a pool of liabilities, tests are performed to demonstrate the similarity of individual instruments of the pool. When it is determined that a derivative is not currently an effective hedge, ineffectiveness is recognized for the full change in fair value of the derivative with no offsetting amount from the hedged item since the last time it was effective. If it is also determined the hedge will not be effective in the future, we discontinue the hedge accounting prospectively and begin amortization of any basis adjustments that exist related to the hedged item. On March 12, 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (“Topic 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” On January 7, 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform (“Topic 848”): Scope” that clarified the scope of Topic 848. Topic 848 contains temporary optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions affected by reference rate reform. Our derivative portfolio is made up of interest rate swaps that are centrally cleared through either the CME or the LCH. On October 16, 2020, both the CME and the LCH changed the price alignment interest and discount rate applied when valuing these transactions to the Secured Overnight Financing rate (“SOFR”). The ISDA 2020 LIBOR Fallbacks Protocol (the “ISDA Fallback Protocol”) was made available for adherence on October 23, 2020, with an effective date of January 25, 2021. Once adhered to by both counterparties in a bilateral relationship and the effective date is reached, the ISDA Fallback Protocol represents a change to the contractual terms of derivatives governed by each respective ISDA agreement between the Company and a derivative counterparty. We have elected the option provided in Topic 848 to not reassess previous accounting determinations as well as the option to not dedesignate a hedging relationship due to a current or future change in a critical or contractual term related to reference rate reform, including changes in the discount rate. As our liabilities may begin to use alternatives to LIBOR before LIBOR is no longer published, for cash flow hedges of forecasted LIBOR based payments, we have elected the expedient offered in Topic 848 to disregard the potential change in the designated hedged interest rate risk that may occur because of reference rate reform when we assesses whether the hedged forecasted transactions are probable, in accordance with the requirements of “Derivatives and Hedging” Topic 815. We have also elected the expedient provided by Topic 848 to assume the reference rate will not be replaced for the remainder of the hedging relationship when assessing hedge effectiveness. Topic 848 allows for different elections to be made at different points in time. We intend to reassess our elections of optional expedients and exceptions included within Topic 848 when changes or additions are necessary. |
Stock-Based Compensation | Stock-Based CompensationWe recognize stock-based compensation cost in our consolidated statements of income using the fair value method. Under this method, we determine the fair value of the stock-based compensation at the time of the grant and recognize the resulting compensation expense over the vesting period of the stock-based grant. We do not apply a forfeiture rate to our stock-based compensation expense, but rather record forfeitures when they occur. We record all excess tax benefits/deficiencies related to the settlement of employee stock-based compensation to the income tax expense line item on our consolidated statements of income. |
Restructuring Activities | Restructuring Activities During the third quarter of 2020, we initiated a restructuring program to reduce costs and improve operating efficiencies by better aligning our organizational structure with our new corporate strategic imperatives. In conjunction with these restructuring plans, involuntary benefit arrangements, and certain other costs that are incremental and incurred as a direct result of our restructuring plans, are classified as restructuring expenses in the accompanying consolidated statements of income. Restructuring expenses of $26 million were recorded in the year ended December 31, 2020. Of that total, $20 million related to severance benefits and $6 million related to other related costs, primarily legal and consulting fees. We recorded $1 million in additional restructuring expenses in the year ended December 31, 2021. There were no restructuring expenses recorded in the year ended December 31, 2019. We sponsor employee severance plans that provide severance benefits in the event of termination of our full-time employees and part-time employees who work at least 24 hours per week. The severance plans establish specified |
Income Taxes | Income Taxes We account for income taxes under the asset and liability approach, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and tax basis of our assets and liabilities. To the extent tax laws change, deferred tax assets and liabilities are adjusted in the period that the tax change is enacted. “Income tax expense (benefit)” includes (i) deferred tax expense (benefit), which represents the net change in the deferred tax asset or liability balance during the year when applicable, and (ii) current tax expense (benefit), which represents the amount of tax currently payable to or receivable from a tax authority plus amounts accrued for unrecognized tax benefits. Income tax expense (benefit) excludes the tax effects related to adjustments recorded in equity. An uncertain tax position is recognized only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The amount of tax benefit recognized in the consolidated financial statements is the largest amount of benefit that is more than 50 percent likely of being sustained upon ultimate settlement of the uncertain tax position. We recognize interest and penalties related to unrecognized tax benefits in income tax expense (benefit). In connection with the Spin-Off, we recorded a liability related to uncertain tax positions of $27 million for which we are indemnified by Navient. If there is an adjustment to the indemnified uncertain tax liability, an offsetting adjustment to the indemnification receivable will be recorded as pre-tax adjustment to other income in the income statement. As of the date of the Spin-Off on April 30, 2014, we recorded liabilities related to deferred taxes and uncertain tax positions and an indemnification receivable of $291 million. As of December 31, 2021, with respect to those amounts recorded at the Spin-Off, the remaining liability balance is $5 million (related to uncertain tax positions) and the remaining indemnification receivable balance is $5 million (related to uncertain tax positions). |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cumulative Effect of Adoption of CECL | The following table illustrates the impact of the cumulative effect adjustment made upon adoption of CECL on January 1, 2020: January 1, 2020 (Dollars in thousands) As reported under CECL Pre-CECL Adoption Impact of CECL Adoption Assets: Allowance for credit losses: Private Education Loans $ 1,435,130 $ 374,300 $ 1,060,830 FFELP Loans 4,485 1,633 2,852 Personal Loans 145,060 65,877 79,183 Credit Cards 290 102 188 Total $ 1,584,965 $ 441,912 $ 1,143,053 Deferred tax asset $ 415,540 $ 109,369 $ 306,171 Liabilities: Allowance for credit losses: Off-balance sheet exposures $ 118,239 $ 2,481 $ 115,758 Equity: Retained Earnings $ 897,873 $ 1,850,512 $ (952,639) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale | The amortized cost and fair value of securities available for sale are as follows: As of December 31, 2021 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 376,313 $ — $ 1,857 $ (7,073) $ 371,097 Utah Housing Corporation bonds 6,943 — 18 — 6,961 U.S. government-sponsored enterprises and Treasuries 1,958,943 — 603 (11,893) 1,947,653 Other securities 193,369 — 439 (1,563) 192,245 Total $ 2,535,568 $ — $ 2,917 $ (20,529) $ 2,517,956 As of December 31, 2020 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 308,913 $ — $ 6,095 $ (134) $ 314,874 Utah Housing Corporation bonds 12,357 — 210 — 12,567 U.S. government-sponsored enterprises and Treasuries 1,596,890 — 3,395 — 1,600,285 Other securities 68,797 — 462 (351) 68,908 Total $ 1,986,957 $ — $ 10,162 $ (485) $ 1,996,634 |
Available-for-sale securities, continuous unrealized loss position, fair value | The following table summarizes the amount of gross unrealized losses for our available-for-sale securities and the estimated fair value for securities having gross unrealized loss positions, categorized by length of time the securities have been in an unrealized loss position: Less than 12 months 12 months or more Total As of December 31, Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value 2021: Mortgage-backed securities $ (5,534) $ 261,404 $ (1,540) $ 36,587 $ (7,074) $ 297,991 Utah Housing Corporation bonds — — — — — — U.S. government-sponsored enterprises and Treasuries (11,892) 1,199,367 — — (11,892) 1,199,367 Other securities (1,563) 132,884 — — (1,563) 132,884 Total $ (18,989) $ 1,593,655 $ (1,540) $ 36,587 $ (20,529) $ 1,630,242 2020: Mortgage-backed securities $ (134) $ 46,011 $ — $ — $ (134) $ 46,011 Utah Housing Corporation bonds — — — — — — U.S. government-sponsored enterprises and Treasuries — — — — — — Other securities (351) 30,441 — — (351) 30,441 Total $ (485) $ 76,452 $ — $ — $ (485) $ 76,452 |
Amortized cost and fair value of securities by contractual maturities | As of December 31, 2021, the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments. As of December 31, 2021 Year of Maturity (Dollars in thousands) Amortized Cost Estimated Fair Value 2022 $ 850,032 $ 850,326 2023 162,617 162,003 2024 398,583 394,941 2026 547,712 540,382 2038 74 79 2039 1,029 1,120 2042 3,183 3,175 2043 5,599 5,797 2044 7,620 7,881 2045 6,764 6,968 2046 10,629 10,818 2047 12,611 12,822 2048 2,961 3,025 2049 19,828 20,458 2050 134,707 131,063 2051 178,250 174,853 2053 141,251 140,260 2054 52,118 51,985 Total $ 2,535,568 $ 2,517,956 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans held for investment | Loans held for investment are summarized as follows: As of December 31, 2021 2020 Private Education Loans: Fixed-rate $ 9,920,547 $ 8,950,216 Variable-rate 10,796,316 10,779,121 Total Private Education Loans, gross 20,716,863 19,729,337 Deferred origination costs and unamortized premium/ (discount) 67,488 63,475 Allowance for credit losses (1,158,977) (1,355,844) Total Private Education Loans, net 19,625,374 18,436,968 FFELP Loans 695,216 737,593 Deferred origination costs and unamortized premium/ (discount) 1,815 1,993 Allowance for credit losses (4,077) (4,378) Total FFELP Loans, net 692,954 735,208 Credit Cards (fixed-rate) 25,014 12,238 Deferred origination costs and unamortized premium/ (discount) 222 230 Allowance for credit losses (2,281) (1,501) Total Credit Cards, net 22,955 10,967 Loans held for investment, net $ 20,341,283 $ 19,183,143 The estimated weighted average life of education loans in our portfolio was approximately 4.7 years and 5.4 years at December 31, 2021 and 2020, respectively. The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: 2021 2020 2019 Years ended December 31, (dollars in thousands) Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 20,968,061 8.25 % $ 22,426,216 8.42 % $ 22,225,473 9.32 % FFELP Loans 718,186 3.43 757,953 3.76 814,198 4.79 Personal Loans — — 582,552 12.43 1,141,503 12.09 Credit Cards 14,982 4.67 9,390 (6.04) — — Total portfolio $ 21,701,229 $ 23,776,111 $ 24,181,174 |
Loans held for investment by Region | Loans Held for Investment by Region At December 31, 2021 and 2020, 38.4 percent and 38.8 percent, respectively, of total education loans were concentrated in the following states: As of December 31, 2021 2020 New York 9.4 % 9.7 % California 9.6 9.6 Pennsylvania 7.8 8.0 New Jersey 6.0 6.2 Texas 5.6 5.3 38.4 % 38.8 % No other state had a concentration of total education loans in excess of 5 percent of the aggregate outstanding education loans held for investment. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Allowance for credit losses and recorded investments in loans | Allowance for Credit Losses Metrics Year Ended December 31, 2021 FFELP Private Education Credit Cards Total Allowance for Credit Losses Beginning balance $ 4,378 $ 1,355,844 $ 1,501 $ 1,361,723 Transfer from unfunded commitment liability (1) — 301,655 — 301,655 Provisions: Provision for current period 20 (233,852) 1,124 (232,708) Loan sale reduction to provision — (66,460) — (66,460) Loans transferred to held-for-sale — 1,887 — 1,887 Total provisions (2) 20 (298,425) 1,124 (297,281) Net charge-offs: Charge-offs (321) (229,591) (356) (230,268) Recoveries — 29,494 12 29,506 Net charge-offs (321) (200,097) (344) (200,762) Ending Balance $ 4,077 $ 1,158,977 $ 2,281 $ 1,165,335 Allowance: Ending balance: individually evaluated for impairment $ — $ 47,712 $ — $ 47,712 Ending balance: collectively evaluated for impairment $ 4,077 $ 1,111,265 $ 2,281 $ 1,117,623 Loans: Ending balance: individually evaluated for impairment $ — $ 1,057,665 $ — $ 1,057,665 Ending balance: collectively evaluated for impairment $ 695,216 $ 19,659,198 $ 25,014 $ 20,379,428 Net charge-offs as a percentage of average loans in repayment (3) 0.06 % 1.33 % 2.24 % Allowance as a percentage of the ending total loan balance 0.59 % 5.59 % 9.12 % Allowance as a percentage of the ending loans in repayment (3) 0.74 % 7.47 % 9.12 % Allowance coverage of net charge-offs 12.70 5.79 6.63 Ending total loans, gross $ 695,216 $ 20,716,863 $ 25,014 Average loans in repayment (3) $ 545,689 $ 15,019,869 $ 15,343 Ending loans in repayment (3) $ 553,980 $ 15,511,212 $ 25,014 (1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Year Ended December 31, 2021 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (298,425) Provisions for unfunded loan commitments 264,324 Total Private Education Loan provisions for credit losses (34,101) Other impacts to the provisions for credit losses: FFELP Loans 20 Credit Cards 1,124 Total 1,144 Provisions for credit losses reported in consolidated statements of income $ (32,957) (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Year Ended December 31, 2020 FFELP Private Education Personal Credit Cards Total Allowance for Credit Losses Beginning balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Day 1 adjustment for the adoption of CECL 2,852 1,060,830 79,183 188 1,143,053 Balance at January 1, 2020 4,485 1,435,130 145,060 290 1,584,965 Transfer from unfunded commitment liability (1) — 320,808 — — 320,808 Provisions: Provision for current period 412 148,673 40,485 1,328 190,898 Loan sale reduction to provision — (161,793) (42,916) — (204,709) Loans transferred to held-for-sale — (205,669) — — (205,669) Total provisions (2) 412 (218,789) (2,431) 1,328 (219,480) Net charge-offs: Charge-offs (519) (205,326) (39,079) (119) (245,043) Recoveries — 24,021 4,984 2 29,007 Net charge-offs (519) (181,305) (34,095) (117) (216,036) Loan sales — — (108,534) — (108,534) Ending Balance $ 4,378 $ 1,355,844 $ — $ 1,501 $ 1,361,723 Allowance: Ending balance: individually evaluated for impairment $ — $ 104,265 $ — $ — $ 104,265 Ending balance: collectively evaluated for impairment $ 4,378 $ 1,251,579 $ — $ 1,501 $ 1,257,458 Loans: Ending balance: individually evaluated for impairment $ — $ 1,274,590 $ — $ — $ 1,274,590 Ending balance: collectively evaluated for impairment $ 737,593 $ 18,454,747 $ — $ 12,238 $ 19,204,578 Net charge-offs as a percentage of average loans in repayment (3) 0.09 % 1.17 % — % 1.26 % Allowance as a percentage of the ending total loan balance 0.59 % 6.87 % — % 12.27 % Allowance as a percentage of the ending loans in repayment (3) 0.76 % 9.48 % — % 12.27 % Allowance coverage of net charge-offs 8.44 7.48 — 12.83 Ending total loans, gross $ 737,593 $ 19,729,337 $ — $ 12,238 Average loans in repayment (3) $ 549,584 $ 15,518,851 $ — $ 9,286 Ending loans in repayment (3) $ 573,361 $ 14,304,821 $ — $ 12,238 (1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Year Ended December 31, 2020 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (218,789) Provisions for unfunded loan commitments 312,613 Total Private Education Loan provisions for credit losses 93,824 Other impacts to the provisions for credit losses: Personal Loans (2,431) FFELP Loans 412 Credit Cards 1,328 Total (691) Provisions for credit losses reported in consolidated statements of income $ 93,133 (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Year Ended December 31, 2019 FFELP Private Education Personal Credit Cards Total Allowance for Credit Losses Beginning balance $ 977 $ 277,943 $ 62,201 $ — $ 341,121 Total provision 1,478 279,570 72,783 103 353,934 Net charge-offs: Charge-offs (822) (208,978) (74,313) (1) (284,114) Recoveries — 25,765 5,206 — 30,971 Net charge-offs (822) (183,213) (69,107) (1) (253,143) Ending Balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Allowance: Ending balance: individually evaluated for impairment $ — $ 186,697 $ — $ — $ 186,697 Ending balance: collectively evaluated for impairment $ 1,633 $ 187,603 $ 65,877 $ 102 $ 255,215 Loans: Ending balance: individually evaluated for impairment $ — $ 1,581,966 $ — $ — $ 1,581,966 Ending balance: collectively evaluated for impairment $ 783,306 $ 21,607,625 $ 1,049,007 $ 3,884 $ 23,443,822 Net charge-offs as a percentage of average loans in repayment (1) 0.13 % 1.17 % 6.07 % 0.13 % Allowance as a percentage of the ending total loan balance 0.21 % 1.61 % 6.28 % 2.63 % Allowance as a percentage of the ending loans in repayment (1) 0.26 % 2.23 % 6.28 % 2.63 % Allowance coverage of net charge-offs 1.99 2.04 0.95 102.00 Ending total loans, gross $ 783,306 $ 23,189,591 $ 1,049,007 $ 3,884 Average loans in repayment (1) $ 631,029 $ 15,605,927 $ 1,138,887 $ 786 Ending loans in repayment (1) $ 617,646 $ 16,787,670 $ 1,049,007 $ 3,884 (1) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Years ended December 31, (dollars in thousands) 2021 2020 2019 Allowance Unfunded Commitments Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 110,044 $ 1,673,018 $ 2,481 $ 1,910,603 $ 2,165 $ 2,010,744 Day 1 adjustment for the adoption of CECL — — 115,758 — — — Balance at January 1 110,044 1,673,018 118,239 1,910,603 2,165 2,010,744 Provision/New commitments - net (1) 232,822 5,512,841 311,659 5,070,175 5,937 5,513,790 Other provision items 31,502 — 954 — 596 — Transfer - funded loans (2) (301,655) (5,408,883) (320,808) (5,307,760) (6,217) (5,613,931) Ending Balance $ 72,713 $ 1,776,976 $ 110,044 $ 1,673,018 $ 2,481 $ 1,910,603 (1) Net of expirations of commitments unused. (2) When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses. |
Unpaid principal balance and related allowance for TDR loans | At December 31, 2021 and 2020, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance, and related allowance for our TDR loans. Years Ended December 31, Recorded Investment Unpaid Principal Balance Allowance 2021: TDR Loans $ 1,093,387 $ 1,057,665 $ 47,712 2020 TDR Loans $ 1,312,805 $ 1,274,590 $ 104,265 |
Average recorded investment and interest income recognized | The following table provides the average recorded investment and interest income recognized for our TDR loans. Years Ended December 31, (dollars in thousands) 2021 2020 2019 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,220,739 $ 84,822 $ 1,546,908 $ 100,125 $ 1,434,137 $ 95,507 |
Age analysis of past due loans delinquencies | The following table provides information regarding the loan status and aging of TDR loans. For the periods presented below, we updated our delinquency bucket periods from what we reported in our 2020 Form 10-K to conform with the delinquency bucket periods defined by the Federal Financial Institutions Examination Council (“FFIEC”). 2021 2020 As of December 31, Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 80,281 $ 88,750 TDR loans in forbearance (2) 41,464 76,704 TDR loans in repayment (3) and percentage of each status: Loans current 832,018 88.9 % 971,880 87.7 % Loans delinquent 30-59 days (4) 48,766 5.2 59,249 5.3 Loans delinquent 60-89 days (4) 30,575 3.3 43,576 3.9 Loans 90 days or greater past due (4) 24,561 2.6 34,431 3.1 Total TDR loans in repayment (3) 935,920 100.0 % 1,109,136 100.0 % Total TDR loans, gross $ 1,057,665 $ 1,274,590 (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period, (but, for purposes of the table, do not include those loans while they are in forbearance). (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. Delinquencies - Private Education Loans Held for Investment The following tables provide information regarding the loan status of our Private Education Loans held for investment, by year of origination. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the following tables, do not include those loans while they are in forbearance). For the periods presented below, we updated our delinquency bucket periods from what we reported in our 2020 Form 10-K to conform with the delinquency bucket periods defined by the FFIEC. Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2021 2021 2020 2019 2018 2017 2016 and Prior Total Loans in-school/grace/deferment (1) $ 1,556,550 $ 1,283,523 $ 773,320 $ 435,657 $ 296,008 $ 559,356 $ 4,904,414 Loans in forbearance (2) 11,951 55,844 52,364 43,613 41,355 96,110 301,237 Loans in repayment: Loans current 2,234,876 2,786,646 2,321,728 1,772,651 1,570,815 4,319,057 15,005,773 Loans delinquent 30-59 days (3) 15,148 29,146 46,616 43,197 41,695 132,757 308,559 Loans delinquent 60-89 days (3) 3,194 7,441 14,044 14,310 16,425 61,533 116,947 Loans 90 days or greater past due (3) 642 3,683 8,453 10,632 11,935 44,588 79,933 Total Private Education Loans in repayment 2,253,860 2,826,916 2,390,841 1,840,790 1,640,870 4,557,935 15,511,212 Total Private Education Loans, gross 3,822,361 4,166,283 3,216,525 2,320,060 1,978,233 5,213,401 20,716,863 Private Education Loans deferred origination costs and unamortized premium/(discount) 22,169 16,067 9,575 5,918 4,588 9,171 67,488 Total Private Education Loans 3,844,530 4,182,350 3,226,100 2,325,978 1,982,821 5,222,572 20,784,351 Private Education Loans allowance for losses (248,102) (239,507) (195,223) (129,678) (99,982) (246,485) (1,158,977) Private Education Loans, net $ 3,596,428 $ 3,942,843 $ 3,030,877 $ 2,196,300 $ 1,882,839 $ 4,976,087 $ 19,625,374 Percentage of Private Education Loans in repayment 59.0 % 67.9 % 74.3 % 79.3 % 82.9 % 87.4 % 74.9 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.8 % 1.4 % 2.9 % 3.7 % 4.3 % 5.2 % 3.3 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.5 % 1.9 % 2.1 % 2.3 % 2.5 % 2.1 % 1.9 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2020 2020 2019 2018 2017 2016 2015 and Prior Total Loans in-school/grace/deferment (1)(2) $ 1,374,085 $ 1,330,175 $ 733,824 $ 508,478 $ 327,763 $ 504,715 $ 4,779,040 Loans in forbearance (1)(3) 16,159 92,677 110,319 118,946 109,073 198,302 645,476 Loans in repayment (1) : Loans current 2,043,033 2,573,228 2,045,012 1,850,539 1,685,572 3,701,564 13,898,948 Loans delinquent 30-59 days (4) 6,400 16,983 26,934 30,771 33,040 91,400 205,528 Loans delinquent 60-89 days (4) 2,628 9,143 15,026 18,121 19,064 55,661 119,643 Loans 90 days or greater past due (4) 460 4,642 9,396 12,939 14,710 38,555 80,702 Total Private Education Loans in repayment 2,052,521 2,603,996 2,096,368 1,912,370 1,752,386 3,887,180 14,304,821 Total Private Education Loans, gross 3,442,765 4,026,848 2,940,511 2,539,794 2,189,222 4,590,197 19,729,337 Private Education Loans deferred origination costs and unamortized premium/(discount) 21,129 13,933 8,671 6,708 5,721 7,313 63,475 Total Private Education Loans 3,463,894 4,040,781 2,949,182 2,546,502 2,194,943 4,597,510 19,792,812 Private Education Loans allowance for losses (210,875) (298,776) (218,136) (184,265) (150,150) (293,642) (1,355,844) Private Education Loans, net $ 3,253,019 $ 3,742,005 $ 2,731,046 $ 2,362,237 $ 2,044,793 $ 4,303,868 $ 18,436,968 Percentage of Private Education Loans in repayment 59.6 % 64.7 % 71.3 % 75.3 % 80.0 % 84.7 % 72.5 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.5 % 1.2 % 2.4 % 3.2 % 3.8 % 4.8 % 2.8 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.8 % 3.4 % 5.0 % 5.9 % 5.9 % 4.9 % 4.3 % (1) For some students, going back to school in the fall of 2020 was not an option because of the pandemic, or for other reasons. Therefore, some students took a “gap year” before returning to school. In 2020, for those students that had unexpectedly separated from school, we provided an extension of time through fall 2021 to re-enroll, before beginning their grace period that occurs prior to entering full principal and interest repayment status. At December 31, 2020, the loans in the “in-school/grace/deferment” category above include $401 million of Private Education Loans whose borrowers did not return to school in the fall of 2020 and who then received such extension of time from us to re-enroll before beginning their grace period. At December 31, 2020, the loans in the “in forbearance” category above include $30 million of Private Education Loans whose borrowers did not return to school in the fall of 2020 and who then received such extension of time from us to re-enroll before beginning their grace period. At December 31, 2020, the loans in the “in repayment” category above include $609 million of Private Education Loans whose borrowers did not return to school in the fall of 2020 and who then received such extension of time from us to re-enroll before beginning their grace period. This program ended in September 2021. (2) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (3) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2019 2019 2018 2017 2016 2015 2014 and Prior Total Loans in-school/grace/deferment (1) $ 1,670,644 $ 1,580,513 $ 1,010,764 $ 635,798 $ 375,585 $ 414,101 $ 5,687,405 Loans in forbearance (2) 21,009 108,509 142,341 146,114 127,799 168,744 714,516 Loans in repayment: Loans current 2,340,221 3,159,878 2,781,132 2,566,815 2,225,721 3,241,884 16,315,651 Loans delinquent 30-59 days (3) 11,152 26,096 44,382 51,656 54,559 100,206 288,051 Loans delinquent 60-89 days (3) 3,087 9,527 17,048 21,161 24,562 45,917 121,302 Loans 90 days or greater past due (3) 935 3,850 7,818 12,314 12,946 24,803 62,666 Total Private Education Loans in repayment 2,355,395 3,199,351 2,850,380 2,651,946 2,317,788 3,412,810 16,787,670 Total Private Education Loans, gross 4,047,048 4,888,373 4,003,485 3,433,858 2,821,172 3,995,655 23,189,591 Private Education Loans deferred origination costs and unamortized premium/(discount) 23,661 17,699 13,843 12,304 8,564 5,153 81,224 Total Private Education Loans 4,070,709 4,906,072 4,017,328 3,446,162 2,829,736 4,000,808 23,270,815 Private Education Loans allowance for losses (3,013) (19,105) (44,858) (71,598) (80,974) (154,752) (374,300) Private Education Loans, net $ 4,067,696 $ 4,886,967 $ 3,972,470 $ 3,374,564 $ 2,748,762 $ 3,846,056 $ 22,896,515 Percentage of Private Education Loans in repayment 58.2 % 65.4 % 71.2 % 77.2 % 82.2 % 85.4 % 72.4 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.6 % 1.2 % 2.4 % 3.2 % 4.0 % 5.0 % 2.8 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.9 % 3.3 % 4.8 % 5.2 % 5.2 % 4.7 % 4.1 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. |
Modified loans accounts for troubled debt restructuring | The following table provides the amount of modified loans (which include forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Years Ended December 31, (dollars in thousands) 2021 2020 2019 Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default TDR Loans $ 7,410 $ 64,682 $ 9,626 $ 207,001 $ 71,267 $ 75,153 $ 515,398 $ 74,137 $ 111,810 |
Private education loan portfolio stratified by key credit quality indicators | The following tables highlight the gross principal balance of our Private Education Loan portfolio (held for investment), by year of origination, stratified by key credit quality indicators. As of December 31, 2021 Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination 2021 (1) 2020 (1) 2019 (1) 2018 (1) 2017 (1) 2016 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 3,263,892 $ 3,604,553 $ 2,778,262 $ 2,025,463 $ 1,765,719 $ 4,753,775 $ 18,191,664 88 % Without cosigner 558,469 561,730 438,263 294,597 212,514 459,626 2,525,199 12 Total $ 3,822,361 $ 4,166,283 $ 3,216,525 $ 2,320,060 $ 1,978,233 $ 5,213,401 $ 20,716,863 100 % FICO at Origination (2) : Less than 670 $ 248,368 $ 238,005 $ 251,157 $ 193,123 $ 166,048 $ 428,416 $ 1,525,117 7 % 670-699 508,264 564,497 493,237 363,313 329,807 884,981 3,144,099 15 700-749 1,210,833 1,348,269 1,057,001 770,452 660,270 1,753,709 6,800,534 33 Greater than or equal to 750 1,854,896 2,015,512 1,415,130 993,172 822,108 2,146,295 9,247,113 45 Total $ 3,822,361 $ 4,166,283 $ 3,216,525 $ 2,320,060 $ 1,978,233 $ 5,213,401 $ 20,716,863 100 % FICO Refreshed (2)(3) : Less than 670 $ 326,613 $ 279,578 $ 273,652 $ 235,684 $ 233,022 $ 739,268 $ 2,087,817 10 % 670-699 506,021 475,674 365,133 256,400 209,536 570,605 2,383,369 12 700-749 1,209,493 1,285,015 978,763 682,024 568,766 1,448,692 6,172,753 30 Greater than or equal to 750 1,780,234 2,126,016 1,598,977 1,145,952 966,909 2,454,836 10,072,924 48 Total $ 3,822,361 $ 4,166,283 $ 3,216,525 $ 2,320,060 $ 1,978,233 $ 5,213,401 $ 20,716,863 100 % Seasoning (4) : 1-12 payments $ 2,265,811 $ 594,850 $ 515,328 $ 385,246 $ 340,242 $ 501,269 $ 4,602,746 22 % 13-24 payments — 2,287,737 362,674 203,674 211,064 479,540 3,544,689 17 25-36 payments — 173 1,565,203 312,049 164,575 482,369 2,524,369 12 37-48 payments — — — 983,434 295,206 464,563 1,743,203 8 More than 48 payments — — — — 671,138 2,726,304 3,397,442 16 Not yet in repayment 1,556,550 1,283,523 773,320 435,657 296,008 559,356 4,904,414 25 Total $ 3,822,361 $ 4,166,283 $ 3,216,525 $ 2,320,060 $ 1,978,233 $ 5,213,401 $ 20,716,863 100 % 2021 Current period (5) gross charge-offs $ (1,183) $ (8,604) $ (23,866) $ (32,741) $ (37,186) $ (126,011) $ (229,591) 2021 Current period (5) recoveries 35 540 2,092 3,693 4,450 18,684 29,494 2021 Current period (5) net charge-offs $ (1,148) $ (8,064) $ (21,774) $ (29,048) $ (32,736) $ (107,327) $ (200,097) Total accrued interest by origination vintage $ 109,233 $ 247,418 $ 270,242 $ 198,816 $ 131,685 $ 229,729 $ 1,187,123 (1) Balance represents gross Private Education Loans held for investment. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2021. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. (5) Current period refers to period from January 1, 2021 through December 31, 2021. As of December 31, 2020 Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination 2020 (1) 2019 (1) 2018 (1) 2017 (1) 2016 (1) 2015 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 2,915,328 $ 3,467,219 $ 2,556,400 $ 2,262,635 $ 1,977,952 $ 4,198,748 $ 17,378,282 88 % Without cosigner 527,437 559,629 384,111 277,159 211,270 391,449 2,351,055 12 Total $ 3,442,765 $ 4,026,848 $ 2,940,511 $ 2,539,794 $ 2,189,222 $ 4,590,197 $ 19,729,337 100 % FICO at Origination (2) : Less than 670 $ 195,214 $ 290,711 $ 225,276 $ 197,948 $ 162,413 $ 369,609 $ 1,441,171 7 % 670-699 464,785 594,950 441,357 407,394 351,303 771,477 3,031,266 16 700-749 1,111,373 1,310,390 967,802 846,983 740,028 1,533,517 6,510,093 33 Greater than or equal to 750 1,671,393 1,830,797 1,306,076 1,087,469 935,478 1,915,594 8,746,807 44 Total $ 3,442,765 $ 4,026,848 $ 2,940,511 $ 2,539,794 $ 2,189,222 $ 4,590,197 $ 19,729,337 100 % FICO Refreshed (2)(3) : Less than 670 $ 240,154 $ 331,229 $ 301,784 $ 298,195 $ 293,077 $ 734,599 $ 2,199,038 11 % 670-699 438,665 493,135 336,966 283,906 231,759 504,779 2,289,210 12 700-749 1,102,666 1,248,806 871,677 734,222 603,160 1,220,468 5,780,999 29 Greater than or equal to 750 1,661,280 1,953,678 1,430,084 1,223,471 1,061,226 2,130,351 9,460,090 48 Total $ 3,442,765 $ 4,026,848 $ 2,940,511 $ 2,539,794 $ 2,189,222 $ 4,590,197 $ 19,729,337 100 % Seasoning (4) : 1-12 payments $ 2,068,517 $ 600,038 $ 469,143 $ 472,258 $ 381,197 $ 507,343 $ 4,498,496 23 % 13-24 payments 163 2,096,635 383,977 223,332 217,379 425,345 3,346,831 17 25-36 payments — — 1,353,567 370,250 181,940 439,337 2,345,094 12 37-48 payments — — — 965,476 351,433 402,552 1,719,461 9 More than 48 payments — — — — 729,510 2,310,905 3,040,415 15 Not yet in repayment 1,374,085 1,330,175 733,824 508,478 327,763 504,715 4,779,040 24 Total $ 3,442,765 $ 4,026,848 $ 2,940,511 $ 2,539,794 $ 2,189,222 $ 4,590,197 $ 19,729,337 100 % 2020 Current period (5) gross charge-offs $ (1,087) $ (10,940) $ (27,000) $ (35,851) $ (36,416) $ (94,032) $ (205,326) 2020 Current period (5) recoveries 42 636 2,274 3,585 4,284 13,200 24,021 2020 Current period (5) net charge-offs $ (1,045) $ (10,304) $ (24,726) $ (32,266) $ (32,132) $ (80,832) $ (181,305) Total accrued interest by origination vintage $ 90,438 $ 265,688 $ 252,251 $ 209,178 $ 141,094 $ 210,247 $ 1,168,896 (1) Balance represents gross Private Education Loans held for investment. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2020. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. (5) Current period refers to period from January 1, 2020 through December 31, 2020. |
Accrued interest receivable | The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans 90 days and greater past due as compared to our allowance for uncollectible interest on loans making full interest payments. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period after separation from school. The allowance for this portion of interest is included in our loan loss reserve. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due Private Education Loan portfolio for all periods presented. Private Education Loans Accrued Interest Receivable (Dollars in thousands) Total Interest 90 Days and Greater Allowance for December 31, 2021 $ 1,187,123 $ 3,635 $ 4,937 December 31, 2020 $ 1,168,895 $ 4,354 $ 4,467 |
Unfunded Loan Commitments (Tabl
Unfunded Loan Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Allowance for credit losses and recorded investments in loans | Allowance for Credit Losses Metrics Year Ended December 31, 2021 FFELP Private Education Credit Cards Total Allowance for Credit Losses Beginning balance $ 4,378 $ 1,355,844 $ 1,501 $ 1,361,723 Transfer from unfunded commitment liability (1) — 301,655 — 301,655 Provisions: Provision for current period 20 (233,852) 1,124 (232,708) Loan sale reduction to provision — (66,460) — (66,460) Loans transferred to held-for-sale — 1,887 — 1,887 Total provisions (2) 20 (298,425) 1,124 (297,281) Net charge-offs: Charge-offs (321) (229,591) (356) (230,268) Recoveries — 29,494 12 29,506 Net charge-offs (321) (200,097) (344) (200,762) Ending Balance $ 4,077 $ 1,158,977 $ 2,281 $ 1,165,335 Allowance: Ending balance: individually evaluated for impairment $ — $ 47,712 $ — $ 47,712 Ending balance: collectively evaluated for impairment $ 4,077 $ 1,111,265 $ 2,281 $ 1,117,623 Loans: Ending balance: individually evaluated for impairment $ — $ 1,057,665 $ — $ 1,057,665 Ending balance: collectively evaluated for impairment $ 695,216 $ 19,659,198 $ 25,014 $ 20,379,428 Net charge-offs as a percentage of average loans in repayment (3) 0.06 % 1.33 % 2.24 % Allowance as a percentage of the ending total loan balance 0.59 % 5.59 % 9.12 % Allowance as a percentage of the ending loans in repayment (3) 0.74 % 7.47 % 9.12 % Allowance coverage of net charge-offs 12.70 5.79 6.63 Ending total loans, gross $ 695,216 $ 20,716,863 $ 25,014 Average loans in repayment (3) $ 545,689 $ 15,019,869 $ 15,343 Ending loans in repayment (3) $ 553,980 $ 15,511,212 $ 25,014 (1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Year Ended December 31, 2021 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (298,425) Provisions for unfunded loan commitments 264,324 Total Private Education Loan provisions for credit losses (34,101) Other impacts to the provisions for credit losses: FFELP Loans 20 Credit Cards 1,124 Total 1,144 Provisions for credit losses reported in consolidated statements of income $ (32,957) (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Year Ended December 31, 2020 FFELP Private Education Personal Credit Cards Total Allowance for Credit Losses Beginning balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Day 1 adjustment for the adoption of CECL 2,852 1,060,830 79,183 188 1,143,053 Balance at January 1, 2020 4,485 1,435,130 145,060 290 1,584,965 Transfer from unfunded commitment liability (1) — 320,808 — — 320,808 Provisions: Provision for current period 412 148,673 40,485 1,328 190,898 Loan sale reduction to provision — (161,793) (42,916) — (204,709) Loans transferred to held-for-sale — (205,669) — — (205,669) Total provisions (2) 412 (218,789) (2,431) 1,328 (219,480) Net charge-offs: Charge-offs (519) (205,326) (39,079) (119) (245,043) Recoveries — 24,021 4,984 2 29,007 Net charge-offs (519) (181,305) (34,095) (117) (216,036) Loan sales — — (108,534) — (108,534) Ending Balance $ 4,378 $ 1,355,844 $ — $ 1,501 $ 1,361,723 Allowance: Ending balance: individually evaluated for impairment $ — $ 104,265 $ — $ — $ 104,265 Ending balance: collectively evaluated for impairment $ 4,378 $ 1,251,579 $ — $ 1,501 $ 1,257,458 Loans: Ending balance: individually evaluated for impairment $ — $ 1,274,590 $ — $ — $ 1,274,590 Ending balance: collectively evaluated for impairment $ 737,593 $ 18,454,747 $ — $ 12,238 $ 19,204,578 Net charge-offs as a percentage of average loans in repayment (3) 0.09 % 1.17 % — % 1.26 % Allowance as a percentage of the ending total loan balance 0.59 % 6.87 % — % 12.27 % Allowance as a percentage of the ending loans in repayment (3) 0.76 % 9.48 % — % 12.27 % Allowance coverage of net charge-offs 8.44 7.48 — 12.83 Ending total loans, gross $ 737,593 $ 19,729,337 $ — $ 12,238 Average loans in repayment (3) $ 549,584 $ 15,518,851 $ — $ 9,286 Ending loans in repayment (3) $ 573,361 $ 14,304,821 $ — $ 12,238 (1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Year Ended December 31, 2020 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (218,789) Provisions for unfunded loan commitments 312,613 Total Private Education Loan provisions for credit losses 93,824 Other impacts to the provisions for credit losses: Personal Loans (2,431) FFELP Loans 412 Credit Cards 1,328 Total (691) Provisions for credit losses reported in consolidated statements of income $ 93,133 (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Year Ended December 31, 2019 FFELP Private Education Personal Credit Cards Total Allowance for Credit Losses Beginning balance $ 977 $ 277,943 $ 62,201 $ — $ 341,121 Total provision 1,478 279,570 72,783 103 353,934 Net charge-offs: Charge-offs (822) (208,978) (74,313) (1) (284,114) Recoveries — 25,765 5,206 — 30,971 Net charge-offs (822) (183,213) (69,107) (1) (253,143) Ending Balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Allowance: Ending balance: individually evaluated for impairment $ — $ 186,697 $ — $ — $ 186,697 Ending balance: collectively evaluated for impairment $ 1,633 $ 187,603 $ 65,877 $ 102 $ 255,215 Loans: Ending balance: individually evaluated for impairment $ — $ 1,581,966 $ — $ — $ 1,581,966 Ending balance: collectively evaluated for impairment $ 783,306 $ 21,607,625 $ 1,049,007 $ 3,884 $ 23,443,822 Net charge-offs as a percentage of average loans in repayment (1) 0.13 % 1.17 % 6.07 % 0.13 % Allowance as a percentage of the ending total loan balance 0.21 % 1.61 % 6.28 % 2.63 % Allowance as a percentage of the ending loans in repayment (1) 0.26 % 2.23 % 6.28 % 2.63 % Allowance coverage of net charge-offs 1.99 2.04 0.95 102.00 Ending total loans, gross $ 783,306 $ 23,189,591 $ 1,049,007 $ 3,884 Average loans in repayment (1) $ 631,029 $ 15,605,927 $ 1,138,887 $ 786 Ending loans in repayment (1) $ 617,646 $ 16,787,670 $ 1,049,007 $ 3,884 (1) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Years ended December 31, (dollars in thousands) 2021 2020 2019 Allowance Unfunded Commitments Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 110,044 $ 1,673,018 $ 2,481 $ 1,910,603 $ 2,165 $ 2,010,744 Day 1 adjustment for the adoption of CECL — — 115,758 — — — Balance at January 1 110,044 1,673,018 118,239 1,910,603 2,165 2,010,744 Provision/New commitments - net (1) 232,822 5,512,841 311,659 5,070,175 5,937 5,513,790 Other provision items 31,502 — 954 — 596 — Transfer - funded loans (2) (301,655) (5,408,883) (320,808) (5,307,760) (6,217) (5,613,931) Ending Balance $ 72,713 $ 1,776,976 $ 110,044 $ 1,673,018 $ 2,481 $ 1,910,603 (1) Net of expirations of commitments unused. (2) When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses. |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following is a summary of our premises and equipment. As of December 31, 2021 2020 Land and land improvements $ 12,356 $ 12,356 Buildings and leasehold improvements 122,300 120,971 Furniture, fixtures, and equipment 29,955 28,272 Software 88,710 76,500 Premises and equipment, gross 253,321 238,099 Accumulated depreciation (102,805) (83,429) Premises and equipment, net $ 150,516 $ 154,670 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Schedule of deposits | The following table summarizes total deposits at December 31, 2021 and 2020. As of December 31, 2021 2020 Deposits - interest bearing $ 20,826,692 $ 22,664,899 Deposits - non-interest bearing 1,432 1,140 Total deposits $ 20,828,124 $ 22,666,039 |
Interest bearing deposits | Interest bearing deposits at December 31, 2021 and 2020 are summarized as follows: 2021 2020 As of December 31, Amount Year-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 10,473,569 0.69 % $ 10,159,657 0.83 % Savings 959,122 0.43 907,976 0.55 Certificates of deposit 9,394,001 1.20 11,597,266 1.34 Deposits - interest bearing $ 20,826,692 $ 22,664,899 (1) |
Schedule of maturities of time deposits | Certificates of deposit remaining maturities are summarized as follows: As of December 31, 2021 2020 One year or less $ 4,407,370 $ 5,728,556 After one year to two years 2,297,955 3,363,022 After two years to three years 1,299,461 1,603,229 After three years to four years 299,737 553,911 After four years to five years 1,042,065 300,346 After five years 47,413 48,202 Total $ 9,394,001 $ 11,597,266 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Secured borrowings | The following table summarizes our secured borrowings at December 31, 2021 and 2020. As of December 31, 2021 2020 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 986,138 $ 986,138 $ — $ 692,879 $ 692,879 Total unsecured borrowings — 986,138 986,138 — 692,879 692,879 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 3,897,996 3,897,996 — 3,261,233 3,261,233 Variable-rate — 1,046,856 1,046,856 — 1,235,105 1,235,105 Total Private Education Loan term securitizations — 4,944,852 4,944,852 — 4,496,338 4,496,338 Secured Borrowing Facility — — — — — — Total secured borrowings — 4,944,852 4,944,852 — 4,496,338 4,496,338 Total $ — $ 5,930,990 $ 5,930,990 $ — $ 5,189,217 $ 5,189,217 |
Short-term borrowings | The following table summarizes the outstanding short-term borrowings, the weighted average interest rates at the end of the period, and the related average balance and weighted average interest rates during the period. The Secured Borrowing Facility’s contractual maturity is two years from the date of inception or renewal (one-year revolving period plus a one-year amortization period); however, we classify advances under our Secured Borrowing Facility as short-term borrowings because it is our intention to repay those advances within one year. The 5.125 percent unsecured Senior Notes due April 5, 2022, which we redeemed in the fourth quarter of 2021, were classified as short-term borrowings in April of 2021, and are included in the table below. December 31, 2021 Year Ended (Dollars in thousands) Ending Balance Weighted Average Average Balance Weighted Average Short-term borrowings: Unsecured Debt $ — — % $ 122,396 5.78 % Secured Borrowing Facility — — — — Total short-term borrowings $ — — % $ 122,396 5.78 % Maximum outstanding at any month end $ 199,651 December 31, 2020 Year Ended (Dollars in thousands) Ending Balance Weighted Average Average Balance Weighted Average Interest Rate (1) Short-term borrowings: Secured Borrowing Facility $ — — % $ 45,820 24.99 % Maximum outstanding at any month end $ 289,230 |
Long-term borrowings | The following table summarizes the outstanding long-term borrowings, the weighted average interest rates at the end of the period and the related average balance during the period. Rates reflect stated interest of borrowings and related discounts and premiums. The long-term borrowings amortize over time and mature serially from 2025 to 2053. December 31, 2021 Year Ended December 31, 2020 Year Ended (Dollars in thousands) Ending Balance Weighted Average Average Balance Ending Balance Weighted Average Average Balance Floating-rate borrowings $ 1,046,857 1.05 % $ 1,073,042 $ 1,235,105 1.09 % $ 1,432,446 Fixed-rate borrowings 4,884,133 2.65 4,094,640 3,954,112 3.08 3,316,425 Total long-term borrowings $ 5,930,990 2.37 % $ 5,167,682 $ 5,189,217 2.60 % $ 4,748,871 |
Schedule of Maturities of Long-term Debt | As of December 31, 2021, the stated maturity and maturity to call date of our brokered deposits and borrowings are summarized below. As of December 31, 2021 Stated Maturity (1) Maturity to Call Date Brokered Deposits Unsecured Debt Secured Borrowings Total Brokered Deposits Unsecured Debt Secured Borrowings Total Year of Maturity 2022 $ 2,918,335 $ — $ 718,153 $ 3,636,488 $ 2,918,335 $ — $ 718,153 $ 3,636,488 2023 2,033,829 — 698,078 2,731,907 2,033,829 — 698,078 2,731,907 2024 1,236,522 — 687,600 1,924,122 1,236,522 — 687,600 1,924,122 2025 270,174 500,000 648,315 1,418,489 270,174 500,000 648,315 1,418,489 2026 1,033,313 500,000 618,380 2,151,693 1,033,313 500,000 618,380 2,151,693 2027 and after 47,401 — 1,750,502 1,797,903 47,401 — 1,750,502 1,797,903 7,539,574 1,000,000 5,121,028 13,660,602 7,539,574 1,000,000 5,121,028 13,660,602 Hedge accounting adjustments 33,426 — — 33,426 33,426 — — 33,426 Total $ 7,573,000 $ 1,000,000 $ 5,121,028 $ 13,694,028 $ 7,573,000 $ 1,000,000 $ 5,121,028 $ 13,694,028 (1) We view our securitization trust debt as long-term based on the contractual maturity dates and projected principal paydowns based on our current estimates regarding loan prepayment speeds. The projected principal paydowns in year 2022 include $718 million related to the securitization trust debt. |
Secured financing | Secured Financings The following summarizes our secured financings issued in 2020 and 2021: Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (Dollars in thousands) Private Education Loans: 2020-A February 2020 $ 636,000 1-month LIBOR plus 0.88% 4.18 2020-B August 2020 707,000 1-month LIBOR plus 1.30% 4.14 Total notes issued in 2020 $ 1,343,000 Total loan and accrued interest amount securitized at inception in 2020 (2) $ 1,463,230 2021-B May 2021 $ 531,000 1-month LIBOR plus 0.77% 4.26 2021-D August 2021 527,000 1-month LIBOR plus 0.69% 4.22 2021-E November 2021 534,000 1-month LIBOR plus 0.69% 4.15 Total notes issued in 2021 $ 1,592,000 Total loan and accrued interest amount securitized at inception in 2021 $ 1,656,263 (1) Represents LIBOR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. |
Schedule of variable interest entities | We consolidate our financing entities that are VIEs as a result of our being the entities’ primary beneficiary. As a result, these financing VIEs are accounted for as secured borrowings. As of December 31, 2021 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 4,994,852 $ 4,994,852 $ 6,029,034 $ 210,741 $ 357,982 $ 6,597,757 Secured Borrowing Facility — — — — — 867 867 Total $ — $ 4,994,852 $ 4,994,852 $ 6,029,034 $ 210,741 $ 358,849 $ 6,598,624 As of December 31, 2020 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 4,496,338 $ 4,496,338 $ 5,661,123 $ 154,417 $ 356,967 $ 6,172,507 Secured Borrowing Facility — — — — — 436 436 Total $ — $ 4,496,338 $ 4,496,338 $ 5,661,123 $ 154,417 $ 357,403 $ 6,172,943 (1) Other assets primarily represent accrued interest receivable. The table below provides a summary of our exposure related to our unconsolidated VIEs. 2021 2020 As of December 31, Debt Interests (1) Equity Interests (2) Total Exposure Debt Interests (1) Equity Interests (2) Total Exposure Private Education Loan term securitizations $ 192,245 $ 37,465 $ 229,710 $ 68,908 $ 16,923 $ 85,831 (1) Vertical risk retention interest classified as available-for-sale investment. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Impact of derivatives on the consolidated balance sheet | The following tables summarize the fair values and notional amounts of all derivative instruments at December 31, 2021 and 2020, and their impact on earnings and other comprehensive income for the years ended December 31, 2021, 2020, and 2019. Impact of Derivatives on the Consolidated Balance Sheets Cash Flow Hedges Fair Value Hedges Trading Total As of December 31, 2021 2020 2021 2020 2021 2020 2021 2020 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ — $ — $ 594 $ 5 $ 135 $ 5 $ 729 Other Other — — — — 1,317 — 1,317 — Derivative Liabilities: (2) Interest rate swaps Interest rate (231) (287) (21) — — — (252) (287) Total net derivatives $ (231) $ (287) $ (21) $ 594 $ 1,322 $ 135 $ 1,070 $ 442 (1) Fair values reported include variation margin as legal settlement of the derivative contract. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: As of December 31, Other Assets Other Liabilities 2021 2020 2021 2020 Gross position (1) $ 1,322 $ 729 $ (252) $ (287) Impact of master netting agreement (5) (176) 5 176 Derivative values with impact of master netting agreements (as carried on balance sheet) 1,317 553 (247) (111) Cash collateral pledged (2) 9,655 42,874 — — Net position $ 10,972 $ 43,427 $ (247) $ (111) __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. |
Offsetting assets | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: As of December 31, Other Assets Other Liabilities 2021 2020 2021 2020 Gross position (1) $ 1,322 $ 729 $ (252) $ (287) Impact of master netting agreement (5) (176) 5 176 Derivative values with impact of master netting agreements (as carried on balance sheet) 1,317 553 (247) (111) Cash collateral pledged (2) 9,655 42,874 — — Net position $ 10,972 $ 43,427 $ (247) $ (111) __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. |
Offsetting liabilities | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: As of December 31, Other Assets Other Liabilities 2021 2020 2021 2020 Gross position (1) $ 1,322 $ 729 $ (252) $ (287) Impact of master netting agreement (5) (176) 5 176 Derivative values with impact of master netting agreements (as carried on balance sheet) 1,317 553 (247) (111) Cash collateral pledged (2) 9,655 42,874 — — Net position $ 10,972 $ 43,427 $ (247) $ (111) __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. |
Schedule of notional amounts of outstanding derivative positions | Notional Values Cash Flow Fair Value Trading Total As of December 31, 2021 2020 2021 2020 2021 2020 2021 2020 Interest rate swaps $ 1,438,144 $ 1,018,976 $ 3,915,999 $ 4,845,543 $ 181,953 $ 2,693,364 $ 5,536,096 $ 8,557,883 Other — — — — 1,053,760 — 1,053,760 — Net total notional $ 1,438,144 $ 1,018,976 $ 3,915,999 $ 4,845,543 $ 1,235,713 $ 2,693,364 $ 6,589,856 $ 8,557,883 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | As of December 31, 2021 and 2020, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: As of December 31, Line Item in the Balance Sheet in Which the Hedged Item is Included: Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) 2021 2020 2021 2020 Deposits $ (3,963,268) $ (4,992,867) $ (50,784) $ (154,235) |
Schedule of derivative instruments performance and location | Impact of Derivatives on the Consolidated Statements of Income Years Ended December 31, 2021 2020 2019 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ 85,850 $ 71,668 $ (8,806) Hedged items recorded in interest expense 103,450 (91,087) (77,350) Derivatives recorded in interest expense (103,431) 91,419 77,177 Total $ 85,869 $ 72,000 $ (8,979) Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ (20,852) $ (16,000) $ 2,299 Total $ (20,852) $ (16,000) $ 2,299 Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ (23,216) $ 10,164 $ 19,469 Total (23,216) 10,164 19,469 Total $ 41,801 $ 66,164 $ 12,789 |
Schedule of derivative instruments, effect on other comprehensive income (loss) | Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Years Ended December 31, 2021 2020 2019 Amount of gain (loss) recognized in other comprehensive income (loss) $ 27,259 $ (52,511) $ (36,115) Less: Amount of gain (loss) reclassified in interest expense (20,852) (16,000) 2,299 Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ 48,111 $ (36,511) $ (38,414) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table summarizes our common share repurchases and issuances associated with these programs. Years Ended December 31, 2021 2020 2019 Common stock repurchased under repurchase programs (1)(2)(3) 98,748,905 47,736,847 16,962,199 Average purchase price per share (4) $ 17.37 $ 9.66 $ 9.86 Shares repurchased related to employee stock-based compensation plans (5) 1,368,942 1,197,843 1,369,630 Average purchase price per share $ 14.70 $ 10.93 $ 10.85 Common shares issued (6) 3,786,581 3,129,325 3,743,705 (1) Common shares purchased under our share repurchase programs. There was $38 million of capacity remaining under the 2021 Share Repurchase Program at December 31, 2021. (2) For the years ended December 31, 2021 and 2020, the amount includes 13 million shares and 45 million shares, respectively, related to the accelerated share repurchase agreement described above. (3) For the year ended December 31, 2021, the amount includes 28.5 million shares related to the settlement of our common stock Tender Offer described above. (4) Average purchase price per share includes purchase commission costs. (5) Comprised of shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (6) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Years ended December 31, (amounts in thousands, except per share data) 2021 2020 2019 Numerator: Net income $ 1,160,513 $ 880,690 $ 578,276 Preferred stock dividends 4,736 9,734 16,837 Net income attributable to SLM Corporation common stock $ 1,155,777 $ 870,956 $ 561,439 Denominator: Weighted average shares used to compute basic EPS 314,993 383,705 427,292 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, and Employee Stock Purchase Plan (“ESPP”) (1)(2) 4,919 3,490 3,382 Weighted average shares used to compute diluted EPS 319,912 387,195 430,674 Basic earnings per common share $ 3.67 $ 2.27 $ 1.31 Diluted earnings per common share $ 3.61 $ 2.25 $ 1.30 (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans and Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock option activity | The following table summarizes stock option activity for the year ended December 31, 2021. (Dollars in thousands, shares and per share amounts in actuals) Number of Weighted Weighted Aggregate Intrinsic Value (1) Outstanding at December 31, 2020 241,675 $ 5.24 Granted 998,891 17.65 Exercised (2)(3) (236,275) 5.24 Canceled (5,400) 5.24 Outstanding at December 31, 2021 (4) 998,891 $ 17.65 2.0 $ 2,018 Exercisable at December 31, 2021 — $ — 0 $ — (1) The aggregate intrinsic value represents the total intrinsic value (the aggregate difference between our closing stock price on December 31, 2021 and the exercise price of in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2021. (2) The total intrinsic value of options exercised was $2 million, $3 million, and $4 million for the years ended December 31, 2021, 2020, and 2019, respectively. (3) No cash was received from option exercises for the year ended December 31, 2021. The actual tax benefit realized for the tax deductions from option exercises totaled less than $1 million for the year ended December 31, 2021. (4) For net-settled options, gross number is reflected. |
Restricted stock activity | The following table summarizes restricted stock activity for the year ended December 31, 2021. (Shares and per share amounts in actuals) Number of Weighted Non-vested at December 31, 2020 143,033 $ 7.69 Granted 54,098 20.33 Vested (1) (143,033) 7.69 Canceled (4,918) 20.33 Non-vested at December 31, 2021 (2) 49,180 $ 20.33 (1) The total fair value of shares that vested during the years ended December 31, 2021, 2020, and 2019 was $1 million, $1 million, and $1 million, respectively. (2) As of December 31, 2021, there was $0.4 million of unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 0.4 years. |
Restricted stock unit and performance stock unit activity | The following table summarizes RSU and PSU activity for the year ended December 31, 2021. (Shares and per share amounts in actuals) Number of Weighted Outstanding at December 31, 2020 6,721,505 $ 10.41 Granted 1,673,427 15.51 Vested and converted to common stock (1) (2,944,877) 10.64 Canceled (141,559) 12.85 Outstanding at December 31, 2021 (2) 5,308,496 $ 11.83 (1) The total fair value of RSUs/PSUs that vested and converted to common stock during the years ended December 31, 2021, 2020, and 2019 was $31 million, $26 million, and $27 million, respectively. (2) As of December 31, 2021, there was $15 million of unrecognized compensation cost related to RSUs/PSUs, which is expected to be recognized over a weighted average period of 1.4 years. |
Black-Scholes Model assumptions for calculating ESPP fair values | The fair values of the stock purchase rights of the ESPP offerings were calculated using a Black-Scholes option pricing model with the following weighted average assumptions: Years ended December 31, (per share amounts in actuals) 2021 2020 2019 Risk-free interest rate 0.07 % 0.12 % 1.87 % Expected volatility 34 % 49 % 29 % Expected dividend rate 0.66 % 1.76 % 1.34 % Expected life of the option 1 year 1 year 1 year Weighted average fair value of stock purchase rights $ 4.93 $ 1.74 $ 1.77 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Valuation of financial instruments that are marked-to-market on recurring basis | The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis. Fair Value Measurements on a Recurring Basis 2021 2020 As of December 31, Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Trading investments $ — $ — $ 37,465 $ 37,465 $ — $ — $ 16,923 $ 16,923 Available-for-sale investments — 2,517,956 — 2,517,956 — 1,996,634 — 1,996,634 Derivative instruments — 1,322 — 1,322 — 729 — 729 Total $ — $ 2,519,278 $ 37,465 $ 2,556,743 $ — $ 1,997,363 $ 16,923 $ 2,014,286 Liabilities: Derivative instruments $ — $ (252) $ — $ (252) $ — $ (287) $ — $ (287) Total $ — $ (252) $ — $ (252) $ — $ (287) $ — $ (287) |
Fair values of financial assets and liabilities, including derivative financial instruments | The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. As of December 31, 2021 2020 Fair Carrying Difference Fair Carrying Difference Earning assets: Loans held for investment, net: Private Education Loans $ 22,919,836 $ 19,625,374 $ 3,294,462 $ 22,124,171 $ 18,436,968 $ 3,687,203 FFELP Loans 705,644 692,954 12,690 748,657 735,208 13,449 Credit Cards 25,037 22,955 2,082 12,249 10,967 1,282 Loans held for sale — — — 3,226,029 2,885,640 340,389 Cash and cash equivalents 4,334,603 4,334,603 — 4,455,292 4,455,292 — Trading investments 37,465 37,465 — 16,923 16,923 — Available-for-sale investments 2,517,956 2,517,956 — 1,996,634 1,996,634 — Accrued interest receivable 1,306,410 1,205,667 100,743 1,527,816 1,387,305 140,511 Tax indemnification receivable 8,047 8,047 — 18,492 18,492 — Derivative instruments 1,322 1,322 — 729 729 — Total earning assets $ 31,856,320 $ 28,446,343 $ 3,409,977 $ 34,126,992 $ 29,944,158 $ 4,182,834 Interest-bearing liabilities: Money-market and savings accounts $ 11,457,490 $ 11,432,691 $ (24,799) $ 11,136,560 $ 11,067,633 $ (68,927) Certificates of deposit 9,451,528 9,394,001 (57,527) 11,799,223 11,597,266 (201,957) Short-term borrowings — — — — — — Long-term borrowings 6,000,174 5,930,990 (69,184) 5,398,309 5,189,217 (209,092) Accrued interest payable 46,600 46,600 — 60,272 60,272 — Derivative instruments 252 252 — 287 287 — Total interest-bearing liabilities $ 26,956,044 $ 26,804,534 $ (151,510) $ 28,394,651 $ 27,914,675 $ (479,976) Excess of net asset fair value over carrying value $ 3,258,467 $ 3,702,858 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of compliance with regulatory capital requirements | The following capital amounts and ratios are based upon the Bank’s average assets and risk-weighted assets, as indicated. (Dollars in thousands) Actual U.S. Basel III Minimum Requirements Plus Buffer (1)(2) Amount Ratio Amount Ratio As of December 31, 2021: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,314,657 14.1 % $ 1,643,132 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,314,657 14.1 % $ 1,995,232 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,410,183 14.5 % $ 2,464,699 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,314,657 11.1 % $ 1,198,808 > 4.0 % As of December 31, 2020: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,579,005 14.0 % $ 1,794,780 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,579,005 14.0 % $ 2,179,375 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,849,820 15.0 % $ 2,692,169 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,579,005 11.3 % $ 1,264,424 > 4.0 % (1) Reflects the U.S. Basel III minimum required ratio plus the applicable capital conservation buffer. (2) The Bank’s regulatory capital ratios also exceeded all applicable standards for the Bank to qualify as “well capitalized” under the prompt corrective action framework. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Reconciliations of statutory U.S. federal income tax rates to our effective tax rate | Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow: Years ended December 31, 2021 2020 2019 Statutory rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit 3.1 2.9 3.9 Business tax credits (0.8) (2.2) (3.5) Reverse federal impact of indemnification adjustments 0.1 0.2 0.3 Unrecognized tax benefits, U.S. federal and state, net of federal benefit 0.4 0.7 (0.1) Other, net 0.9 1.1 0.7 Effective tax rate 24.7 % 23.7 % 22.3 % |
Components of provision for income tax expense (benefit) | Income tax expense consists of: As of December 31, 2021 2020 2019 Current provision (benefit): Federal $ 259,536 $ 172,153 $ 150,800 State 64,843 28,387 24,378 Total current provision (benefit) 324,379 200,540 175,178 Deferred provision (benefit): Federal 47,240 58,003 (8,240) State 8,132 14,773 (1,474) Total deferred provision (benefit) 55,372 72,776 (9,714) Provision for income tax expense $ 379,751 $ 273,316 $ 165,464 |
Schedule of deferred tax assets and liabilities | The tax effect of temporary differences that give rise to deferred tax assets and liabilities is summarized below. As of December 31, 2021 2020 Deferred tax assets: Loan reserves $ 300,538 $ 356,296 Stock-based compensation plans 10,174 10,914 Deferred revenue 1,318 1,441 Operating loss carryovers 394 83 Accrued expenses not currently deductible 14,307 13,139 Net unrealized losses — 9,047 Unrecorded tax benefits 11,016 6,997 Other 1,097 1,003 Total deferred tax assets 338,844 398,920 Deferred tax liabilities: Fixed assets 10,131 11,098 Acquired intangible assets 8,710 7,767 Market value adjustments on student loans, investments and derivatives 33 5,651 Net unrealized gains 6,459 — Federal deferred for state receivable 1,921 7,456 Student loan premiums and discounts, net 12,396 11,336 Other 363 307 Total deferred tax liabilities 40,013 43,615 Net deferred tax assets $ 298,831 $ 355,305 |
Summary of changes in unrecognized tax benefits | The following table summarizes changes in unrecognized tax benefits: As of December 31, 2021 2020 2019 Unrecognized tax benefits at beginning of year $ 63,134 $ 53,509 $ 52,159 Increases resulting from tax positions taken during a prior period 1,496 12,723 12,333 Decreases resulting from tax positions taken during a prior period (1,481) (817) (851) Increases resulting from tax positions taken during the current period 20,743 7,815 4,572 Decreases related to settlements with taxing authorities (3,682) (148) (8,670) Increases related to settlements with taxing authorities 96 — — Reductions related to the lapse of statute of limitations (4,978) (9,948) (6,034) Unrecognized tax benefits at end of year $ 75,328 $ 63,134 $ 53,509 |
Parent Only Statements (Tables)
Parent Only Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent only Condensed Balance Sheets | Parent Only Condensed Balance Sheets At December 31, (dollars in thousands) 2021 2020 Assets Cash and cash equivalents $ 570,726 $ 539,074 Total investments in subsidiaries (primarily Sallie Mae Bank) 2,527,780 2,689,027 Income taxes receivables, net — 1,835 Tax indemnification receivable 8,047 18,492 Due from subsidiaries, net 105,667 47,357 Other assets 3,361 2,457 Total assets $ 3,215,581 $ 3,298,242 Liabilities and Equity Liabilities Long-term borrowings $ 986,138 $ 692,879 Income taxes payable, net 34,822 — Payable due to Navient 101 8,531 Other liabilities 44,809 33,997 Total liabilities 1,065,870 735,407 Equity Preferred stock, par value $0.20 per share, 20 million shares authorized: Series B: 2.5 million and 2.5 million shares issued, respectively, at stated value of $100 per share 251,070 251,070 Common stock, par value $0.20 per share, 1.125 billion shares authorized: 432.0 million and 456.7 million shares issued, respectively 86,403 91,346 Additional paid-in capital 1,074,384 1,331,247 Accumulated other comprehensive loss (net of tax benefit of $(5,707) and $(10,908), respectively) (17,897) (34,200) Retained earnings 2,817,134 1,722,365 Total SLM Corporation stockholders’ equity before treasury stock 4,211,094 3,361,828 Less: Common stock held in treasury at cost: 153.1 million and 81.4 million shares, respectively (2,061,383) (798,993) Total equity 2,149,711 2,562,835 Total liabilities and equity $ 3,215,581 $ 3,298,242 |
Parent only Condensed Statements of Income | Parent Only Condensed Statements of Income Years ended December 31, (dollars in thousands) 2021 2020 2019 Interest income $ 392 $ 452 $ 2,663 Interest expense 35,208 14,896 11,060 Net interest loss (34,816) (14,444) (8,397) Non-interest income (loss) (13,078) 2,820 (10,856) Non-interest expenses 54,352 57,945 39,423 Loss before income tax benefit and equity in net income from subsidiaries (102,246) (69,569) (58,676) Income tax expense (benefit) 8,477 (11,235) (25,260) Equity in net income from subsidiaries (primarily Sallie Mae Bank) 1,271,236 939,024 611,692 Net income 1,160,513 880,690 578,276 Preferred stock dividends 4,736 9,734 16,837 Net income attributable to SLM Corporation common stock $ 1,155,777 $ 870,956 $ 561,439 |
Parent only Condensed Statements of Cash Flows | Parent Only Condensed Statement of Cash Flows Years ended December 31, (dollars in thousands) 2021 2020 2019 Cash flows from operating activities: Net income $ 1,160,513 $ 880,690 $ 578,276 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Undistributed earnings of subsidiaries (1,271,236) (939,024) (611,692) Dividends received from Sallie Mae Bank 1,444,500 579,400 254,000 Reduction of tax indemnification receivable 10,445 9,066 11,649 Amortization of unsecured debt upfront fees 2,663 1,029 811 Loss on early extinguishment of unsecured debt 2,784 — $ — Gain on sale of Upromise subsidiary, net — (11,331) — Decrease in investment in subsidiaries, net 34,935 53,698 2,611 (Increase) decrease in due from subsidiaries, net (58,310) (4,813) 6,254 Increase in other assets (16,964) (10,504) (12,999) Increase (decrease) in income taxes payable, net 36,657 (13,292) (25,814) Decrease in payable due to entity that is a subsidiary of Navient (8,430) (533) (416) Increase (decrease) in other liabilities 2,165 12,874 (5,796) Total adjustments 179,209 (323,430) (381,392) Net cash provided by operating activities 1,339,722 557,260 196,884 Cash flows from investing activities: Proceeds from the sale of Upromise subsidiary, net — 16,922 — Net cash provided by investing activities — 16,922 — Cash flows from financing activities: Issuance costs for unsecured debt offering (1,540) (1,309) — Unsecured debt issued 492,135 495,000 — Unsecured debt repaid (202,784) — — Repurchase of Series B Preferred Stock — (68,055) — Common stock dividends paid (60,462) (46,351) (51,114) Preferred stock dividends paid (4,736) (9,734) (16,837) Common stock repurchased (1,530,683) (558,167) (167,201) Net cash used in financing activities (1,308,070) (188,616) (235,152) Net increase (decrease) in cash and cash equivalents 31,652 385,566 (38,268) Cash and cash equivalents at beginning of year 539,074 153,508 191,776 Cash and cash equivalents at end of year $ 570,726 $ 539,074 $ 153,508 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2021 (Dollars in thousands, except per share data) First Second Third Fourth Quarter Quarter Quarter Quarter Net interest income $ 331,114 $ 338,784 $ 357,518 $ 367,350 Less: provisions for credit losses (225,767) 69,677 138,442 (15,309) Net interest income after provisions for credit losses 556,881 269,107 219,076 382,659 Gains (losses) on sales of loans, net 399,111 3,679 (10) 145,535 Gains (losses) on derivative and hedging activities, net 28 89 44 (17) Other income 14,288 48,580 13,879 7,243 Total operating expenses 124,499 128,010 140,649 125,495 Total restructuring expenses 1,077 70 108 — Income tax expense 203,525 53,174 19,392 103,660 Net income 641,207 140,201 72,840 306,265 Preferred stock dividends 1,201 1,192 1,166 1,177 Net income attributable to SLM Corporation common stock $ 640,006 $ 139,009 $ 71,674 $ 305,088 Basic earnings per common share (1) $ 1.77 $ 0.45 $ 0.24 $ 1.06 Diluted earnings per common share (1) $ 1.75 $ 0.44 $ 0.24 $ 1.04 Declared dividends per common share $ 0.03 $ 0.03 $ 0.03 $ 0.11 (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. 2020 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 400,116 $ 348,775 $ 364,567 $ 366,537 Less: provisions for credit losses 61,258 351,887 (3,640) (316,372) Net interest income (loss) after provisions for credit losses 338,858 (3,112) 368,207 682,909 Gains (losses) on sales of loans, net 238,935 (369) (4) (247) Gains (losses) on derivative and hedging activities, net 45,672 3,751 (15) 136 Other income 7,487 25,412 9,646 1,043 Total operating expenses 147,298 141,557 127,490 121,743 Total restructuring expenses — — 24,127 2,088 Income tax expense (benefit) 121,481 (30,664) 55,189 127,310 Net income (loss) 362,173 (85,211) 171,028 432,700 Preferred stock dividends 3,464 2,478 2,058 1,734 Net income (loss) attributable to SLM Corporation common stock $ 358,709 $ (87,689) $ 168,970 $ 430,966 Basic earnings (loss) per common share (1) $ 0.88 $ (0.23) $ 0.45 $ 1.15 Diluted earnings (loss) per common share (1) $ 0.87 $ (0.23) $ 0.45 $ 1.13 Declared dividends per common share $ 0.03 $ 0.06 $ — $ 0.03 (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. |
Significant Accounting Polici_4
Significant Accounting Policies - Trading Investments (Details) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Vertical risk retention interest | 5.00% | 5.00% |
Significant Accounting Polici_5
Significant Accounting Policies - Troubled Debt Restructurings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Percentage of Private Education Loans related to borrowers in school, grace or deferment | 24.00% | 24.00% |
Interest rate offered to borrowers facing financial difficulty | 4.00% | |
Interest rate offered to borrowers facing financial difficulty, period | 2 years | |
Period of forbearance period to be classified as TDR | 3 months | |
Period of forbearance | 24 months | |
Period after grace period for forbearance allowance for loans | 9 months | |
Forbearance period after grace period for loans | 6 months | |
Percentage of loans granted forbearance (as a percentage) | 47.00% | 47.00% |
Monthly payment that is smaller than the interest accrued on the loan in that month | $ 25 |
Significant Accounting Polici_6
Significant Accounting Policies - Allowance for FFELP Loans and Loan Interest Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Percentage reimbursement on all qualifying default claims period two (as a percentage) | 97.00% | |
Percentage reimbursement on all qualifying default claims period one (as a percentage) | 98.00% | |
Variable rate | 100.00% | |
Maximum loss exposure due to federal guarantee | 3.00% | |
Basis points | 0.0105 | |
Loans in nonaccrual status | $ 0 | $ 0 |
Significant Accounting Polici_7
Significant Accounting Policies - Deposits (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Period of notification for withdrawal of deposits (less than or equal to) | 7 days |
Significant Accounting Polici_8
Significant Accounting Policies - Gain on Sale of Loans, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||||||||||
Gains on sales of loans, net | $ 145,535 | $ (10) | $ 3,679 | $ 399,111 | $ (247) | $ (4) | $ (369) | $ 238,935 | $ 548,315 | $ 238,315 | $ 0 |
Proceeds from sale of loans receivable | 4,240,000 | 3,100,000 | |||||||||
Net proceeds from sales of loans held for investment, principal | 3,980,000 | 2,900,000 | |||||||||
Net proceeds from sales of loans held for investment, capitalized interest | $ 264,000 | $ 199,000 |
Significant Accounting Polici_9
Significant Accounting Policies - Securitization Accounting (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Asset balance related to securitization trust (as a percentage) | 10.00% |
Significant Accounting Polic_10
Significant Accounting Policies - Derivative Accounting (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional derivative contracts | $ 6,589,856 | $ 8,557,883 |
CME | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional derivative contracts | $ 5,200,000 | |
Percent of total notional derivative contracts | 94.40% | |
LCH | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional derivative contracts | $ 300,000 | |
Percent of total notional derivative contracts | 5.60% | |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional derivative contracts | $ 5,536,096 | $ 8,557,883 |
Significant Accounting Polic_11
Significant Accounting Policies - Restructuring Activities (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)position | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |||||||||||
Restructuring expenses | $ 0 | $ 108 | $ 70 | $ 1,077 | $ 2,088 | $ 24,127 | $ 0 | $ 0 | $ 1,255 | $ 26,215 | $ 0 |
Severance costs | 20,000 | ||||||||||
Other related costs | $ 6,000 | ||||||||||
Number of positions eliminated | position | 165 | ||||||||||
Number of positions eliminated, percent | 9.00% |
Significant Accounting Polic_12
Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income taxes receivable, net | $ 239,578 | $ 374,706 | |
Navient | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred tax asset discount | $ 27,000 | ||
Deferred tax liability | 5,000 | ||
Income taxes receivable, net | $ 5,000 | $ 291,000 |
Significant Accounting Polic_13
Significant Accounting Policies - Effect of CECL Adoption (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 1,165,335 | $ 1,361,723 | $ 441,912 | $ 341,121 | |
Off-balance sheet exposures | 72,713 | 110,044 | 2,481 | $ 2,165 | |
Retained earnings | 2,817,134 | 1,722,365 | 1,850,512 | ||
Deferred tax asset | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax asset | 109,369 | ||||
Private Education Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 1,158,977 | 1,355,844 | 374,300 | ||
FFELP Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 4,077 | 4,378 | 1,633 | ||
Personal Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 65,877 | ||||
Credit Cards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 2,281 | $ 1,501 | 102 | ||
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 1,584,965 | ||||
Off-balance sheet exposures | 118,239 | 118,239 | |||
Retained earnings | 897,873 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Deferred tax asset | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax asset | 415,540 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Private Education Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 1,435,130 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | FFELP Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 4,485 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Personal Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 145,060 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Credit Cards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 290 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 1,143,053 | 1,584,965 | |||
Off-balance sheet exposures | 115,758 | $ 115,758 | |||
Retained earnings | (952,639) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Deferred tax asset | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax asset | 306,171 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Private Education Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 1,060,830 | ||||
Cumulative Effect, Period of Adoption, Adjustment | FFELP Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 2,852 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Personal Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 79,183 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Credit Cards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 188 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | ||
Cash due from Federal Reserve Bank | $ 4,300,000,000 | $ 4,400,000,000 |
Cash due from depository institutions | 75,000,000 | 73,000,000 |
Outstanding cash equivalents | 0 | 0 |
Interest income from term deposit facility | 0 | 0 |
Funds on deposit with the FRB | $ 0 | $ 0 |
Investments - Trading Investmen
Investments - Trading Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Vertical risk retention interest | 5.00% | 5.00% | |
Trading investments | $ 37,465 | $ 16,923 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,535,568 | $ 1,986,957 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 2,917 | 10,162 |
Gross Unrealized Losses | (20,529) | (485) |
Available-for-sale investments | 2,517,956 | 1,996,634 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 376,313 | 308,913 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 1,857 | 6,095 |
Gross Unrealized Losses | (7,073) | (134) |
Available-for-sale investments | 371,097 | 314,874 |
Utah Housing Corporation bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,943 | 12,357 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 18 | 210 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale investments | 6,961 | 12,567 |
U.S. government-sponsored enterprises and Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,958,943 | 1,596,890 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 603 | 3,395 |
Gross Unrealized Losses | (11,893) | 0 |
Available-for-sale investments | 1,947,653 | 1,600,285 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 193,369 | 68,797 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 439 | 462 |
Gross Unrealized Losses | (1,563) | (351) |
Available-for-sale investments | $ 192,245 | $ 68,908 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses and Fair Value for Mortgage-Backed in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Less than 12 months | ||
Gross Unrealized Losses | $ (18,989) | $ (485) |
Estimated Fair Value | 1,593,655 | 76,452 |
12 months or more | ||
Gross Unrealized Losses | (1,540) | 0 |
Estimated Fair Value | 36,587 | 0 |
Total | ||
Gross Unrealized Losses | (20,529) | (485) |
Estimated Fair Value | 1,630,242 | 76,452 |
Mortgage-backed securities | ||
Less than 12 months | ||
Gross Unrealized Losses | (5,534) | (134) |
Estimated Fair Value | 261,404 | 46,011 |
12 months or more | ||
Gross Unrealized Losses | (1,540) | 0 |
Estimated Fair Value | 36,587 | 0 |
Total | ||
Gross Unrealized Losses | (7,074) | (134) |
Estimated Fair Value | 297,991 | 46,011 |
Utah Housing Corporation bonds | ||
Less than 12 months | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
12 months or more | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
Total | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
U.S. government-sponsored enterprises and Treasuries | ||
Less than 12 months | ||
Gross Unrealized Losses | (11,892) | 0 |
Estimated Fair Value | 1,199,367 | 0 |
12 months or more | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
Total | ||
Gross Unrealized Losses | (11,892) | 0 |
Estimated Fair Value | 1,199,367 | 0 |
Other securities | ||
Less than 12 months | ||
Gross Unrealized Losses | (1,563) | (351) |
Estimated Fair Value | 132,884 | 30,441 |
12 months or more | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
Total | ||
Gross Unrealized Losses | (1,563) | (351) |
Estimated Fair Value | $ 132,884 | $ 30,441 |
Investments - Additional Info (
Investments - Additional Info (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Summary of Investment Holdings [Line Items] | |||
Number of mortgage-backed securities | 180 | 163 | |
Par value of mortgage-backed securities pledged to FRB | $ | $ 888 | $ 815 | |
Vertical risk retention interest | 5.00% | 5.00% | |
Mortgage-backed securities | |||
Summary of Investment Holdings [Line Items] | |||
Number of government sponsored securities with unrealized losses | 60 | 14 |
Investments - Maturity Table (D
Investments - Maturity Table (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,535,568 | $ 1,986,957 |
Estimated Fair Value | 2,517,956 | $ 1,996,634 |
Maturity 2022 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 850,032 | |
Estimated Fair Value | 850,326 | |
Maturity 2023 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 162,617 | |
Estimated Fair Value | 162,003 | |
Maturity 2024 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 398,583 | |
Estimated Fair Value | 394,941 | |
Maturity 2026 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 547,712 | |
Estimated Fair Value | 540,382 | |
Maturity 2038 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 74 | |
Estimated Fair Value | 79 | |
Maturity 2039 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,029 | |
Estimated Fair Value | 1,120 | |
Maturity 2042 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,183 | |
Estimated Fair Value | 3,175 | |
Maturity 2043 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,599 | |
Estimated Fair Value | 5,797 | |
Maturity 2044 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,620 | |
Estimated Fair Value | 7,881 | |
Maturity 2045 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,764 | |
Estimated Fair Value | 6,968 | |
Maturity 2046 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,629 | |
Estimated Fair Value | 10,818 | |
Maturity 2047 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,611 | |
Estimated Fair Value | 12,822 | |
Maturity 2048 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,961 | |
Estimated Fair Value | 3,025 | |
Maturity 2049 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,828 | |
Estimated Fair Value | 20,458 | |
Maturity 2050 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 134,707 | |
Estimated Fair Value | 131,063 | |
Maturity 2051 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 178,250 | |
Estimated Fair Value | 174,853 | |
Maturity 2053 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 141,251 | |
Estimated Fair Value | 140,260 | |
Maturity 2054 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 52,118 | |
Estimated Fair Value | $ 51,985 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gain on equity securities investment | $ 8 | $ 35 | |
Non-marketable securities investment | $ 69 | $ 26 |
Investments - Low Income Housin
Investments - Low Income Housing Tax Credit Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Low income housing tax credit investments | $ 7 | $ 6 | $ 6 |
Amount of amortization reported in income tax expense | 6 | 5 | $ 4 |
Total carrying value of LIHTC investments | 68 | 54 | |
Liability for unfunded commitments | $ 30 | $ 19 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2021USD ($)payment | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)paymentnumberOfExtensionsrateReduction | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Finance Receivable Transferred To Held For Sale [Line Items] | ||||||||||||||
Private loans indexed to LIBOR | 52.10% | 55.00% | 52.10% | 55.00% | ||||||||||
Tier 1 of government guarantee | 97.00% | |||||||||||||
Tier 2 of government guarantee | 98.00% | |||||||||||||
Tier 3 of government guarantee | 100.00% | |||||||||||||
Gains on sales of loans, net | $ 145,535,000 | $ (10,000) | $ 3,679,000 | $ 399,111,000 | $ (247,000) | $ (4,000) | $ (369,000) | $ 238,935,000 | $ 548,315,000 | $ 238,315,000 | $ 0 | |||
Proceeds from sale of loans receivable | 4,240,000,000 | 3,100,000,000 | ||||||||||||
Net proceeds from sales of loans held for investment, principal | 3,980,000,000 | 2,900,000,000 | ||||||||||||
Net proceeds from sales of loans held for investment, capitalized interest | $ 264,000,000 | $ 199,000,000 | ||||||||||||
Net proceeds from sales of personal loans, principal | 697,000,000 | |||||||||||||
Net proceeds from personal loans, accrued interest | 7,000,000 | |||||||||||||
Estimated weighted average life of student loans | 4 years 8 months 12 days | 5 years 4 months 24 days | ||||||||||||
Number of payments due before granting forbearance | payment | 1 | 1 | ||||||||||||
Increment in which disaster forbearance is granted | 3 months | |||||||||||||
Maximum amount of forbearance granted | 12 months | |||||||||||||
Period of positive payment performance required by a borrower between successive grants of forbearance | 12 months | |||||||||||||
Number of payments required by a borrower between successive grants of forbearance | payment | 12 | |||||||||||||
Period excluded from disallowance of forbearance following grace period | 6 months | |||||||||||||
Period that delinquent borrowers can participate in certain short-term interest-only payment alternatives, option one | 12 months | |||||||||||||
Period that delinquent borrowers can participate in certain short-term interest-only payment alternatives, option two | 5 years | |||||||||||||
Interest rate reduction | 4.00% | |||||||||||||
Interest rate offered to borrowers facing financial difficulty, period | 2 years | |||||||||||||
Number of available extensions of final maturity date of loan under loan modification program, borrowers facing financial difficulty | numberOfExtensions | 1 | |||||||||||||
Number of rate reductions available under loan modification program, borrowers facing financial difficulty | rateReduction | 2 | |||||||||||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | 4.00% | ||||||||||||
Number of consecutive monthly payments required to qualify for rate reduction, borrowers facing financial difficulty | payment | 3 | |||||||||||||
Period of positive payment performance required by a borrower between successive grants of forbearance, borrowers facing financial difficulty | 12 months | |||||||||||||
Loans currently in repayment status that were subject to interest rate reductions | 7.20% | 7.80% | 7.20% | 7.80% | ||||||||||
Period of loans past due that have accrued interest | 90 days | 90 days | ||||||||||||
Loans in nonaccrual status | $ 0 | $ 0 | ||||||||||||
Percentage of loans concentrated in major states | 38.40% | 38.80% | 38.40% | 38.80% | ||||||||||
Percentage of aggregate outstanding loans held for investment | 5.00% | |||||||||||||
Personal Loans | ||||||||||||||
Finance Receivable Transferred To Held For Sale [Line Items] | ||||||||||||||
Loan sale reduction to provision | $ 43,000,000 | |||||||||||||
Private Education Loans | ||||||||||||||
Finance Receivable Transferred To Held For Sale [Line Items] | ||||||||||||||
Ninety or more days delinquent | $ 80,000,000 | $ 81,000,000 | $ 80,000,000 | $ 81,000,000 | ||||||||||
Loans pledged to borrower in custody | 2,900,000,000 | 3,300,000,000 | 2,900,000,000 | 3,300,000,000 | ||||||||||
FFELP Loans | ||||||||||||||
Finance Receivable Transferred To Held For Sale [Line Items] | ||||||||||||||
Ninety or more days delinquent | $ 34,000,000 | $ 36,000,000 | $ 34,000,000 | $ 36,000,000 | ||||||||||
Maximum | ||||||||||||||
Finance Receivable Transferred To Held For Sale [Line Items] | ||||||||||||||
Increments in which forbearance is granted | 2 months | |||||||||||||
Increase to life of loan defaults | 16.60% | |||||||||||||
Minimum | ||||||||||||||
Finance Receivable Transferred To Held For Sale [Line Items] | ||||||||||||||
Increments in which forbearance is granted | 1 month | |||||||||||||
Increase to life of loan defaults | 10.10% |
Loans Held for Investment - Stu
Loans Held for Investment - Student Loan Portfolio by Program (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses | $ (1,165,335) | $ (1,361,723) | $ (441,912) | $ (341,121) |
Loans held for investment, net | 20,341,283 | 19,183,143 | ||
Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan type | 20,716,863 | 19,729,337 | ||
Deferred origination costs and unamortized premium/(discount) | 67,488 | 63,475 | ||
Allowance for credit losses | (1,158,977) | (1,355,844) | (374,300) | |
Loans held for investment, net | 19,625,374 | 18,436,968 | ||
Private Education Loans | Fixed-rate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan type | 9,920,547 | 8,950,216 | ||
Private Education Loans | Variable-rate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan type | 10,796,316 | 10,779,121 | ||
FFELP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan type | 695,216 | 737,593 | ||
Deferred origination costs and unamortized premium/(discount) | 1,815 | 1,993 | ||
Allowance for credit losses | (4,077) | (4,378) | (1,633) | |
Loans held for investment, net | 692,954 | 735,208 | ||
Credit Cards | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan type | 25,014 | 12,238 | ||
Deferred origination costs and unamortized premium/(discount) | 222 | 230 | ||
Allowance for credit losses | (2,281) | (1,501) | $ (102) | |
Loans held for investment, net | $ 22,955 | $ 10,967 |
Loans Held for Investment - S_2
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | $ 21,701,229 | $ 23,776,111 | $ 24,181,174 |
Private Education Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | $ 20,968,061 | $ 22,426,216 | $ 22,225,473 |
Weighted Average Interest Rate | 8.25% | 8.42% | 9.32% |
FFELP Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | $ 718,186 | $ 757,953 | $ 814,198 |
Weighted Average Interest Rate | 3.43% | 3.76% | 4.79% |
Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | $ 0 | $ 582,552 | $ 1,141,503 |
Weighted Average Interest Rate | 0.00% | 12.43% | 12.09% |
Credit Cards | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Balance | $ 14,982 | $ 9,390 | $ 0 |
Weighted Average Interest Rate | 4.67% | (6.04%) | 0.00% |
Loans Held for Investment - By
Loans Held for Investment - By Region (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Loans held for investment by Region [Line Items] | ||
Percentage of Loans concentrated in major states | 38.40% | 38.80% |
New York | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 9.40% | 9.70% |
California | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 9.60% | 9.60% |
Pennsylvania | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 7.80% | 8.00% |
New Jersey | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 6.00% | 6.20% |
Texas | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 5.60% | 5.30% |
Loans Held for Sale (Details)
Loans Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Loans held for sale | $ 2,885,640 | $ 0 |
Loans transferred to held-for-sale | $ 206,000 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance and Recorded Investments in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Credit Losses | |||||||||||
Beginning balance | $ 1,361,723 | $ 441,912 | $ 1,361,723 | $ 441,912 | $ 341,121 | ||||||
Transfer from unfunded commitment liability | 301,655 | 320,808 | |||||||||
Provision for current period | (232,708) | 190,898 | |||||||||
Loan sale reduction to provision | (66,460) | (204,709) | |||||||||
Loans transferred to held-for-sale | 1,887 | (205,669) | |||||||||
Total provisions | (297,281) | (219,480) | 353,934 | ||||||||
Net charge-offs: | |||||||||||
Charge-offs | (230,268) | (245,043) | (284,114) | ||||||||
Recoveries | 29,506 | 29,007 | 30,971 | ||||||||
Net charge-offs | (200,762) | (216,036) | (253,143) | ||||||||
Loan sales | (108,534) | ||||||||||
Ending balance | $ 1,165,335 | $ 1,361,723 | 1,165,335 | 1,361,723 | 441,912 | ||||||
Allowance: | |||||||||||
Ending balance: individually evaluated for impairment | 47,712 | 104,265 | 47,712 | 104,265 | 186,697 | ||||||
Ending balance: collectively evaluated for impairment | 1,117,623 | 1,257,458 | 1,117,623 | 1,257,458 | 255,215 | ||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 1,057,665 | 1,274,590 | 1,057,665 | 1,274,590 | 1,581,966 | ||||||
Ending balance: collectively evaluated for impairment | 20,379,428 | 19,204,578 | 20,379,428 | 19,204,578 | 23,443,822 | ||||||
Provisions for unfunded loan commitments | 232,822 | 311,659 | 5,937 | ||||||||
Less: provisions for credit losses | (15,309) | $ 138,442 | $ 69,677 | (225,767) | (316,372) | $ (3,640) | $ 351,887 | 61,258 | (32,957) | 93,133 | 354,249 |
Cumulative Effect, Period of Adoption, Adjustment | |||||||||||
Allowance for Credit Losses | |||||||||||
Beginning balance | 1,584,965 | 1,584,965 | |||||||||
Day 1 adjustment for the adoption of CECL | 1,143,053 | ||||||||||
Net charge-offs: | |||||||||||
Ending balance | 1,584,965 | ||||||||||
Private Education Loans | |||||||||||
Allowance for Credit Losses | |||||||||||
Beginning balance | 1,355,844 | 374,300 | 1,355,844 | 374,300 | 277,943 | ||||||
Transfer from unfunded commitment liability | 301,655 | 320,808 | |||||||||
Provision for current period | (233,852) | 148,673 | |||||||||
Loan sale reduction to provision | (66,460) | (161,793) | |||||||||
Loans transferred to held-for-sale | 1,887 | (205,669) | |||||||||
Total provisions | (298,425) | (218,789) | 279,570 | ||||||||
Net charge-offs: | |||||||||||
Charge-offs | (229,591) | (205,326) | (208,978) | ||||||||
Recoveries | 29,494 | 24,021 | 25,765 | ||||||||
Net charge-offs | (200,097) | (181,305) | (183,213) | ||||||||
Loan sales | 0 | ||||||||||
Ending balance | 1,158,977 | 1,355,844 | 1,158,977 | 1,355,844 | 374,300 | ||||||
Allowance: | |||||||||||
Ending balance: individually evaluated for impairment | 47,712 | 104,265 | 47,712 | 104,265 | 186,697 | ||||||
Ending balance: collectively evaluated for impairment | 1,111,265 | 1,251,579 | 1,111,265 | 1,251,579 | 187,603 | ||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 1,057,665 | 1,274,590 | 1,057,665 | 1,274,590 | 1,581,966 | ||||||
Ending balance: collectively evaluated for impairment | 19,659,198 | 18,454,747 | $ 19,659,198 | $ 18,454,747 | $ 21,607,625 | ||||||
Net charge-offs as a percentage of average loans in repayment (annualized) | 1.33% | 1.17% | 1.17% | ||||||||
Allowance as a percentage of the ending total loan balance | 5.59% | 6.87% | 1.61% | ||||||||
Allowance as a percentage of the ending loans in repayment | 7.47% | 9.48% | 2.23% | ||||||||
Allowance coverage of net charge-offs (annualized) | 5.79 | 7.48 | 2.04 | ||||||||
Ending total loans, gross | 20,716,863 | 19,729,337 | $ 20,716,863 | $ 19,729,337 | $ 23,189,591 | ||||||
Average loans in repayment | 15,019,869 | 15,518,851 | 15,605,927 | ||||||||
Ending loans in repayment | 15,511,212 | 14,304,821 | 15,511,212 | 14,304,821 | 16,787,670 | ||||||
Provisions for unfunded loan commitments | 264,324 | 312,613 | |||||||||
Less: provisions for credit losses | (34,101) | 93,824 | |||||||||
Private Education Loans | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||
Allowance for Credit Losses | |||||||||||
Beginning balance | 1,435,130 | 1,435,130 | |||||||||
Day 1 adjustment for the adoption of CECL | 1,060,830 | ||||||||||
Net charge-offs: | |||||||||||
Ending balance | 1,435,130 | ||||||||||
Other Industries, Excluding Private Education Loans | |||||||||||
Allowance for Credit Losses | |||||||||||
Total provisions | 1,144 | (691) | |||||||||
FFELP Loans | |||||||||||
Allowance for Credit Losses | |||||||||||
Beginning balance | 4,378 | 1,633 | 4,378 | 1,633 | 977 | ||||||
Transfer from unfunded commitment liability | 0 | 0 | |||||||||
Provision for current period | 20 | 412 | |||||||||
Loan sale reduction to provision | 0 | 0 | |||||||||
Loans transferred to held-for-sale | 0 | 0 | |||||||||
Total provisions | 20 | 412 | 1,478 | ||||||||
Net charge-offs: | |||||||||||
Charge-offs | (321) | (519) | (822) | ||||||||
Recoveries | 0 | 0 | 0 | ||||||||
Net charge-offs | (321) | (519) | (822) | ||||||||
Loan sales | 0 | ||||||||||
Ending balance | 4,077 | 4,378 | 4,077 | 4,378 | 1,633 | ||||||
Allowance: | |||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 4,077 | 4,378 | 4,077 | 4,378 | 1,633 | ||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 695,216 | 737,593 | $ 695,216 | $ 737,593 | $ 783,306 | ||||||
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.06% | 0.09% | 0.13% | ||||||||
Allowance as a percentage of the ending total loan balance | 0.59% | 0.59% | 0.21% | ||||||||
Allowance as a percentage of the ending loans in repayment | 0.74% | 0.76% | 0.26% | ||||||||
Allowance coverage of net charge-offs (annualized) | 12.70 | 8.44 | 1.99 | ||||||||
Ending total loans, gross | 695,216 | 737,593 | $ 695,216 | $ 737,593 | $ 783,306 | ||||||
Average loans in repayment | 545,689 | 549,584 | 631,029 | ||||||||
Ending loans in repayment | 553,980 | 573,361 | 553,980 | 573,361 | 617,646 | ||||||
FFELP Loans | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||
Allowance for Credit Losses | |||||||||||
Beginning balance | 4,485 | 4,485 | |||||||||
Day 1 adjustment for the adoption of CECL | 2,852 | ||||||||||
Net charge-offs: | |||||||||||
Ending balance | 4,485 | ||||||||||
Credit Cards | |||||||||||
Allowance for Credit Losses | |||||||||||
Beginning balance | 1,501 | 102 | 1,501 | 102 | 0 | ||||||
Transfer from unfunded commitment liability | 0 | 0 | |||||||||
Provision for current period | 1,124 | 1,328 | |||||||||
Loan sale reduction to provision | 0 | 0 | |||||||||
Loans transferred to held-for-sale | 0 | 0 | |||||||||
Total provisions | 1,124 | 1,328 | 103 | ||||||||
Net charge-offs: | |||||||||||
Charge-offs | (356) | (119) | (1) | ||||||||
Recoveries | 12 | 2 | 0 | ||||||||
Net charge-offs | (344) | (117) | (1) | ||||||||
Loan sales | 0 | ||||||||||
Ending balance | 2,281 | 1,501 | 2,281 | 1,501 | 102 | ||||||
Allowance: | |||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 2,281 | 1,501 | 2,281 | 1,501 | 102 | ||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Ending balance: collectively evaluated for impairment | 25,014 | 12,238 | $ 25,014 | $ 12,238 | $ 3,884 | ||||||
Net charge-offs as a percentage of average loans in repayment (annualized) | 2.24% | 1.26% | 0.13% | ||||||||
Allowance as a percentage of the ending total loan balance | 9.12% | 12.27% | 2.63% | ||||||||
Allowance as a percentage of the ending loans in repayment | 9.12% | 12.27% | 2.63% | ||||||||
Allowance coverage of net charge-offs (annualized) | 6.63 | 12.83 | 102 | ||||||||
Ending total loans, gross | 25,014 | 12,238 | $ 25,014 | $ 12,238 | $ 3,884 | ||||||
Average loans in repayment | 15,343 | 9,286 | 786 | ||||||||
Ending loans in repayment | $ 25,014 | 12,238 | 25,014 | 12,238 | 3,884 | ||||||
Credit Cards | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||
Allowance for Credit Losses | |||||||||||
Beginning balance | 290 | 290 | |||||||||
Day 1 adjustment for the adoption of CECL | 188 | ||||||||||
Net charge-offs: | |||||||||||
Ending balance | 290 | ||||||||||
Personal Loans | |||||||||||
Allowance for Credit Losses | |||||||||||
Beginning balance | $ 0 | 65,877 | $ 0 | 65,877 | 62,201 | ||||||
Transfer from unfunded commitment liability | 0 | ||||||||||
Provision for current period | 40,485 | ||||||||||
Loan sale reduction to provision | (42,916) | ||||||||||
Loans transferred to held-for-sale | 0 | ||||||||||
Total provisions | (2,431) | 72,783 | |||||||||
Net charge-offs: | |||||||||||
Charge-offs | (39,079) | (74,313) | |||||||||
Recoveries | 4,984 | 5,206 | |||||||||
Net charge-offs | (34,095) | (69,107) | |||||||||
Loan sales | (108,534) | ||||||||||
Ending balance | 0 | 0 | 65,877 | ||||||||
Allowance: | |||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||||||
Ending balance: collectively evaluated for impairment | 0 | 0 | 65,877 | ||||||||
Loans: | |||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | ||||||||
Ending balance: collectively evaluated for impairment | 0 | $ 0 | $ 1,049,007 | ||||||||
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.00% | 6.07% | |||||||||
Allowance as a percentage of the ending total loan balance | 0.00% | 6.28% | |||||||||
Allowance as a percentage of the ending loans in repayment | 0.00% | 6.28% | |||||||||
Allowance coverage of net charge-offs (annualized) | 0 | 0.95 | |||||||||
Ending total loans, gross | 0 | $ 0 | $ 1,049,007 | ||||||||
Average loans in repayment | 0 | 1,138,887 | |||||||||
Ending loans in repayment | $ 0 | 0 | 1,049,007 | ||||||||
Personal Loans | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||
Allowance for Credit Losses | |||||||||||
Beginning balance | $ 145,060 | $ 145,060 | |||||||||
Day 1 adjustment for the adoption of CECL | 79,183 | ||||||||||
Net charge-offs: | |||||||||||
Ending balance | $ 145,060 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 01, 2006 | |
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | ||||||||||||
Less: provisions for credit losses | $ (232,708,000) | $ 190,898,000 | ||||||||||
Decrease to provisions | 126,000,000 | |||||||||||
Proceeds from sale of loans receivable | $ 4,240,000,000 | $ 3,100,000,000 | ||||||||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | 4.00% | ||||||||||
Interest rate offered to borrowers facing financial difficulty, period | 2 years | |||||||||||
Percentage of loans in full and interest repayment status that are subject to interest rate reductions | 7.20% | 7.80% | 7.20% | 7.80% | ||||||||
Percentage of loans granted forbearance (as a percentage) | 47.00% | 47.00% | 47.00% | 47.00% | ||||||||
Criteria for loans to be considered as nonperforming | 90 days | |||||||||||
Tier 1 of government guarantee (at least) | 97.00% | |||||||||||
TDR payment default period | 60 days | |||||||||||
Period of loans past due that have accrued interest | 90 days | 90 days | ||||||||||
Monthly payment that is smaller than the interest accrued on the loan in that month | $ 25 | |||||||||||
Less: provisions for credit losses | $ (15,309,000) | $ 138,442,000 | $ 69,677,000 | $ (225,767,000) | $ (316,372,000) | $ (3,640,000) | $ 351,887,000 | $ 61,258,000 | (32,957,000) | $ 93,133,000 | $ 354,249,000 | |
Private Education Loans | ||||||||||||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | ||||||||||||
Less: provisions for credit losses | (233,852,000) | 148,673,000 | ||||||||||
Less: provisions for credit losses | (34,101,000) | 93,824,000 | ||||||||||
FFELP Loans | ||||||||||||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | ||||||||||||
Less: provisions for credit losses | $ 20,000 | $ 412,000 | ||||||||||
Tier 1 of government guarantee (at least) | 97.00% | 97.00% | ||||||||||
Maximum | ||||||||||||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | ||||||||||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | 4.00% |
Allowance for Credit Losses - R
Allowance for Credit Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Details) - TDR Loans - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | $ 1,093,387 | $ 1,312,805 |
Unpaid Principal Balance | 1,057,665 | 1,274,590 |
Allowance | $ 47,712 | $ 104,265 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Average Recorded Investment and Interest Income Recognized for TDR (Details) - TDR Loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | $ 1,220,739 | $ 1,546,908 | $ 1,434,137 |
Interest Income Recognized | $ 84,822 | $ 100,125 | $ 95,507 |
Allowance for Credit Losses - L
Allowance for Credit Losses - Loan Status and Aging of Past Due TDR Loans (Details) - Student Loan - Consumer Portfolio Segment - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
TDR loans in repayment and percentage of each status: | |||
Total Private Education Loans in forbearance, Year 1 | $ 2,253,860 | $ 2,052,521 | $ 2,355,395 |
Troubled Debt Restructured Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR loans in in-school/grace/deferment | 80,281 | 88,750 | |
TDR loans in forbearance | 41,464 | 76,704 | |
TDR loans in repayment and percentage of each status: | |||
Loans | 1,057,665 | 1,274,590 | |
Total Private Education Loans in forbearance, Year 1 | $ 935,920 | $ 1,109,136 | |
Total TDR loans in repayment | 100.00% | 100.00% | |
Total | $ 1,057,665 | $ 1,274,590 | |
Loan delinquent, current | |||
TDR loans in repayment and percentage of each status: | |||
Loans | 15,005,773 | 13,898,948 | 16,315,651 |
Total | 15,005,773 | 13,898,948 | 16,315,651 |
Loan delinquent, current | Troubled Debt Restructured Loans | |||
TDR loans in repayment and percentage of each status: | |||
Loans | $ 832,018 | $ 971,880 | |
Loans current, in percentage | 88.90% | 87.70% | |
Total | $ 832,018 | $ 971,880 | |
Loan delinquent 30-59 days | |||
TDR loans in repayment and percentage of each status: | |||
Loans | 308,559 | 205,528 | 288,051 |
Total | 308,559 | 205,528 | 288,051 |
Loan delinquent 30-59 days | Troubled Debt Restructured Loans | |||
TDR loans in repayment and percentage of each status: | |||
Loans | $ 48,766 | $ 59,249 | |
Loans delinquent (in percentage) | 5.20% | 5.30% | |
Total | $ 48,766 | $ 59,249 | |
Loan delinquent 60-89 days | |||
TDR loans in repayment and percentage of each status: | |||
Loans | 116,947 | 119,643 | 121,302 |
Total | 116,947 | 119,643 | 121,302 |
Loan delinquent 60-89 days | Troubled Debt Restructured Loans | |||
TDR loans in repayment and percentage of each status: | |||
Loans | $ 30,575 | $ 43,576 | |
Loans delinquent (in percentage) | 3.30% | 3.90% | |
Total | $ 30,575 | $ 43,576 | |
Loan delinquent 90 days or greater past due | |||
TDR loans in repayment and percentage of each status: | |||
Loans | 79,933 | 80,702 | 62,666 |
Total | 79,933 | 80,702 | $ 62,666 |
Loan delinquent 90 days or greater past due | Troubled Debt Restructured Loans | |||
TDR loans in repayment and percentage of each status: | |||
Loans | $ 24,561 | $ 34,431 | |
Loans delinquent (in percentage) | 2.60% | 3.10% | |
Total | $ 24,561 | $ 34,431 |
Allowance for Credit Losses - M
Allowance for Credit Losses - Modified Loan Accounts for TDR (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | |||
Modified Loans | $ 7,410 | $ 207,001 | $ 515,398 |
Charge-offs | 64,682 | 71,267 | 74,137 |
Payment-Default | $ 9,626 | $ 75,153 | $ 111,810 |
Allowance for Credit Losses -_4
Allowance for Credit Losses - Loan Portfolio Stratified by Key Credit Quality Indicators (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfer of allowance for funded loans | $ (230,268) | $ (245,043) | $ (284,114) |
Current period recoveries | 29,506 | 29,007 | 30,971 |
Net charge-offs | (200,762) | (216,036) | (253,143) |
Consumer Portfolio Segment | Student Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Current period gross charge-offs, Year 1 | (1,183) | (1,087) | |
Current period gross charge-offs, Year 2 | (8,604) | (10,940) | |
Current period gross charge-offs, Year 3 | (23,866) | (27,000) | |
Current period gross charge-offs, Year 4 | (32,741) | (35,851) | |
Current period gross charge-offs, Year 5 | (37,186) | (36,416) | |
Current period gross charge-offs, Year 6 | (126,011) | (94,032) | |
Transfer of allowance for funded loans | (229,591) | (205,326) | |
Current period recoveries, Year 1 | 35 | 42 | |
Current period recoveries, Year 2 | 540 | 636 | |
Current period recoveries, Year 3 | 2,092 | 2,274 | |
Current period recoveries, Year 4 | 3,693 | 3,585 | |
Current period recoveries, Year 5 | 4,450 | 4,284 | |
Current period recoveries, Year 6 | 18,684 | 13,200 | |
Current period recoveries | 29,494 | 24,021 | |
Current period net charge-offs, Year 1 | (1,148) | (1,045) | |
Current period net charge-offs, Year 2 | (8,064) | (10,304) | |
Current period net charge-offs, Year 3 | (21,774) | (24,726) | |
Current period net charge-offs, Year 4 | (29,048) | (32,266) | |
Current period net charge-offs, Year 5 | (32,736) | (32,132) | |
Current period net charge-offs, Year 6 | (107,327) | (80,832) | |
Net charge-offs | (200,097) | (181,305) | |
Total accrued interest by origination vintage, Year 1 | 109,233 | 90,438 | |
Total accrued interest by origination vintage, Year 2 | 247,418 | 265,688 | |
Total accrued interest by origination vintage, Year 3 | 270,242 | 252,251 | |
Total accrued interest by origination vintage, Year 4 | 198,816 | 209,178 | |
Total accrued interest by origination vintage, Year 5 | 131,685 | 141,094 | |
Total accrued interest by origination vintage, Year 6 | 229,729 | 210,247 | |
Total accrued interest by origination vintage | 1,187,123 | 1,168,896 | |
Consumer Portfolio Segment | Student Loan | Loan delinquent, current | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 2,234,876 | 2,043,033 | 2,340,221 |
Year 2 | 2,786,646 | 2,573,228 | 3,159,878 |
Year 3 | 2,321,728 | 2,045,012 | 2,781,132 |
Year 4 | 1,772,651 | 1,850,539 | 2,566,815 |
Year 5 | 1,570,815 | 1,685,572 | 2,225,721 |
Year 6 | 4,319,057 | 3,701,564 | 3,241,884 |
Total | 15,005,773 | 13,898,948 | 16,315,651 |
Consumer Portfolio Segment | Student Loan | Loan delinquent 30-59 days | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 15,148 | 6,400 | 11,152 |
Year 2 | 29,146 | 16,983 | 26,096 |
Year 3 | 46,616 | 26,934 | 44,382 |
Year 4 | 43,197 | 30,771 | 51,656 |
Year 5 | 41,695 | 33,040 | 54,559 |
Year 6 | 132,757 | 91,400 | 100,206 |
Total | 308,559 | 205,528 | 288,051 |
Consumer Portfolio Segment | Student Loan | Loan delinquent 60-89 days | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 3,194 | 2,628 | 3,087 |
Year 2 | 7,441 | 9,143 | 9,527 |
Year 3 | 14,044 | 15,026 | 17,048 |
Year 4 | 14,310 | 18,121 | 21,161 |
Year 5 | 16,425 | 19,064 | 24,562 |
Year 6 | 61,533 | 55,661 | 45,917 |
Total | 116,947 | 119,643 | 121,302 |
Consumer Portfolio Segment | Student Loan | Loan delinquent 90 days or greater past due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 642 | 460 | 935 |
Year 2 | 3,683 | 4,642 | 3,850 |
Year 3 | 8,453 | 9,396 | 7,818 |
Year 4 | 10,632 | 12,939 | 12,314 |
Year 5 | 11,935 | 14,710 | 12,946 |
Year 6 | 44,588 | 38,555 | 24,803 |
Total | 79,933 | 80,702 | 62,666 |
Consumer Portfolio Segment | Student Loan | With cosigner | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 3,263,892 | 2,915,328 | |
Year 2 | 3,604,553 | 3,467,219 | |
Year 3 | 2,778,262 | 2,556,400 | |
Year 4 | 2,025,463 | 2,262,635 | |
Year 5 | 1,765,719 | 1,977,952 | |
Year 6 | 4,753,775 | 4,198,748 | |
Total | $ 18,191,664 | $ 17,378,282 | |
Private education loans | 88.00% | 88.00% | |
Consumer Portfolio Segment | Student Loan | Without cosigner | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 558,469 | $ 527,437 | |
Year 2 | 561,730 | 559,629 | |
Year 3 | 438,263 | 384,111 | |
Year 4 | 294,597 | 277,159 | |
Year 5 | 212,514 | 211,270 | |
Year 6 | 459,626 | 391,449 | |
Total | $ 2,525,199 | $ 2,351,055 | |
Private education loans | 12.00% | 12.00% | |
Consumer Portfolio Segment | Student Loan | Cosigners | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 3,822,361 | $ 3,442,765 | |
Year 2 | 4,166,283 | 4,026,848 | |
Year 3 | 3,216,525 | 2,940,511 | |
Year 4 | 2,320,060 | 2,539,794 | |
Year 5 | 1,978,233 | 2,189,222 | |
Year 6 | 5,213,401 | 4,590,197 | |
Total | $ 20,716,863 | $ 19,729,337 | |
Total in percent | 100.00% | 100.00% | |
Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 3,822,361 | $ 3,442,765 | |
Year 2 | 4,166,283 | 4,026,848 | |
Year 3 | 3,216,525 | 2,940,511 | |
Year 4 | 2,320,060 | 2,539,794 | |
Year 5 | 1,978,233 | 2,189,222 | |
Year 6 | 5,213,401 | 4,590,197 | |
Total | $ 20,716,863 | $ 19,729,337 | |
Total in percent | 100.00% | 100.00% | |
Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | FICO score less than 670 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 248,368 | $ 195,214 | |
Year 2 | 238,005 | 290,711 | |
Year 3 | 251,157 | 225,276 | |
Year 4 | 193,123 | 197,948 | |
Year 5 | 166,048 | 162,413 | |
Year 6 | 428,416 | 369,609 | |
Total | $ 1,525,117 | $ 1,441,171 | |
Private Education Loans at origination | 7.00% | 7.00% | |
Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | FICO score 670-699 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 508,264 | $ 464,785 | |
Year 2 | 564,497 | 594,950 | |
Year 3 | 493,237 | 441,357 | |
Year 4 | 363,313 | 407,394 | |
Year 5 | 329,807 | 351,303 | |
Year 6 | 884,981 | 771,477 | |
Total | $ 3,144,099 | $ 3,031,266 | |
Private Education Loans at origination | 15.00% | 16.00% | |
Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | FICO score 700-749 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 1,210,833 | $ 1,111,373 | |
Year 2 | 1,348,269 | 1,310,390 | |
Year 3 | 1,057,001 | 967,802 | |
Year 4 | 770,452 | 846,983 | |
Year 5 | 660,270 | 740,028 | |
Year 6 | 1,753,709 | 1,533,517 | |
Total | $ 6,800,534 | $ 6,510,093 | |
Private Education Loans at origination | 33.00% | 33.00% | |
Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | FICO score greater than 750 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 1,854,896 | $ 1,671,393 | |
Year 2 | 2,015,512 | 1,830,797 | |
Year 3 | 1,415,130 | 1,306,076 | |
Year 4 | 993,172 | 1,087,469 | |
Year 5 | 822,108 | 935,478 | |
Year 6 | 2,146,295 | 1,915,594 | |
Total | $ 9,247,113 | $ 8,746,807 | |
Private Education Loans at origination | 45.00% | 44.00% | |
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 3,822,361 | $ 3,442,765 | |
Year 2 | 4,166,283 | 4,026,848 | |
Year 3 | 3,216,525 | 2,940,511 | |
Year 4 | 2,320,060 | 2,539,794 | |
Year 5 | 1,978,233 | 2,189,222 | |
Year 6 | 5,213,401 | 4,590,197 | |
Total | $ 20,716,863 | $ 19,729,337 | |
Total in percent | 100.00% | 100.00% | |
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | FICO score less than 670 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 326,613 | $ 240,154 | |
Year 2 | 279,578 | 331,229 | |
Year 3 | 273,652 | 301,784 | |
Year 4 | 235,684 | 298,195 | |
Year 5 | 233,022 | 293,077 | |
Year 6 | 739,268 | 734,599 | |
Total | $ 2,087,817 | $ 2,199,038 | |
Private Education Loans at origination | 10.00% | 11.00% | |
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | FICO score 670-699 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 506,021 | $ 438,665 | |
Year 2 | 475,674 | 493,135 | |
Year 3 | 365,133 | 336,966 | |
Year 4 | 256,400 | 283,906 | |
Year 5 | 209,536 | 231,759 | |
Year 6 | 570,605 | 504,779 | |
Total | $ 2,383,369 | $ 2,289,210 | |
Private Education Loans at origination | 12.00% | 12.00% | |
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | FICO score 700-749 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 1,209,493 | $ 1,102,666 | |
Year 2 | 1,285,015 | 1,248,806 | |
Year 3 | 978,763 | 871,677 | |
Year 4 | 682,024 | 734,222 | |
Year 5 | 568,766 | 603,160 | |
Year 6 | 1,448,692 | 1,220,468 | |
Total | $ 6,172,753 | $ 5,780,999 | |
Private Education Loans at origination | 30.00% | 29.00% | |
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | FICO score greater than 750 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 1,780,234 | $ 1,661,280 | |
Year 2 | 2,126,016 | 1,953,678 | |
Year 3 | 1,598,977 | 1,430,084 | |
Year 4 | 1,145,952 | 1,223,471 | |
Year 5 | 966,909 | 1,061,226 | |
Year 6 | 2,454,836 | 2,130,351 | |
Total | $ 10,072,924 | $ 9,460,090 | |
Private Education Loans at origination | 48.00% | 48.00% | |
Consumer Portfolio Segment | Student Loan | Seasoning | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 3,822,361 | $ 3,442,765 | |
Year 2 | 4,166,283 | 4,026,848 | |
Year 3 | 3,216,525 | 2,940,511 | |
Year 4 | 2,320,060 | 2,539,794 | |
Year 5 | 1,978,233 | 2,189,222 | |
Year 6 | 5,213,401 | 4,590,197 | |
Total | $ 20,716,863 | $ 19,729,337 | |
Seasoning based on monthly scheduled payments due from 1-12 payments, in percent | 22.00% | 23.00% | |
Seasoning based on monthly scheduled payments due from 13 - 24 payments, in percent | 17.00% | 17.00% | |
Seasoning based on monthly scheduled payments due from 25 - 36 payments, in percent | 12.00% | 12.00% | |
Seasoning based on monthly scheduled payments due from 37 - 48 payments, in percent | 8.00% | 9.00% | |
Seasoning based on monthly scheduled payments due from more than 48 payments, in percent | 16.00% | 15.00% | |
Seasoning - based on monthly scheduled payments due from not yet in repayment, in percent | 25.00% | 24.00% | |
Total in percent | 100.00% | 100.00% | |
Consumer Portfolio Segment | Student Loan | Seasoning | 1-12 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 2,265,811 | $ 2,068,517 | |
Year 2 | 594,850 | 600,038 | |
Year 3 | 515,328 | 469,143 | |
Year 4 | 385,246 | 472,258 | |
Year 5 | 340,242 | 381,197 | |
Year 6 | 501,269 | 507,343 | |
Total | 4,602,746 | 4,498,496 | |
Consumer Portfolio Segment | Student Loan | Seasoning | 13-24 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 0 | 163 | |
Year 2 | 2,287,737 | 2,096,635 | |
Year 3 | 362,674 | 383,977 | |
Year 4 | 203,674 | 223,332 | |
Year 5 | 211,064 | 217,379 | |
Year 6 | 479,540 | 425,345 | |
Total | 3,544,689 | 3,346,831 | |
Consumer Portfolio Segment | Student Loan | Seasoning | 25-36 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 0 | 0 | |
Year 2 | 173 | 0 | |
Year 3 | 1,565,203 | 1,353,567 | |
Year 4 | 312,049 | 370,250 | |
Year 5 | 164,575 | 181,940 | |
Year 6 | 482,369 | 439,337 | |
Total | 2,524,369 | 2,345,094 | |
Consumer Portfolio Segment | Student Loan | Seasoning | 37-48 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 0 | 0 | |
Year 2 | 0 | 0 | |
Year 3 | 0 | 0 | |
Year 4 | 983,434 | 965,476 | |
Year 5 | 295,206 | 351,433 | |
Year 6 | 464,563 | 402,552 | |
Total | 1,743,203 | 1,719,461 | |
Consumer Portfolio Segment | Student Loan | Seasoning | More than 48 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 0 | 0 | |
Year 2 | 0 | 0 | |
Year 3 | 0 | 0 | |
Year 4 | 0 | 0 | |
Year 5 | 671,138 | 729,510 | |
Year 6 | 2,726,304 | 2,310,905 | |
Total | 3,397,442 | 3,040,415 | |
Consumer Portfolio Segment | Student Loan | Seasoning | Not yet in repayment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 1,556,550 | 1,374,085 | |
Year 2 | 1,283,523 | 1,330,175 | |
Year 3 | 773,320 | 733,824 | |
Year 4 | 435,657 | 508,478 | |
Year 5 | 296,008 | 327,763 | |
Year 6 | 559,356 | 504,715 | |
Total | 4,904,414 | 4,779,040 | |
Consumer Portfolio Segment | Student Loan | Loans In-School/Grace/Deferment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 1,556,550 | 1,374,085 | 1,670,644 |
Year 2 | 1,283,523 | 1,330,175 | 1,580,513 |
Year 3 | 773,320 | 733,824 | 1,010,764 |
Year 4 | 435,657 | 508,478 | 635,798 |
Year 5 | 296,008 | 327,763 | 375,585 |
Year 6 | 559,356 | 504,715 | 414,101 |
Total | $ 4,904,414 | 4,779,040 | $ 5,687,405 |
Consumer Portfolio Segment | Student Loan, Borrowers Who Did Not Return To School And Received Extenstion | Loans In-School/Grace/Deferment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 401,000 |
Allowance for Credit Losses -_5
Allowance for Credit Losses - Age Analysis of Past Due Loans Delinquencies (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans allowance for losses | $ (1,165,335) | $ (1,361,723) | $ (441,912) | $ (341,121) |
Loans held for investment, net | $ 20,341,283 | $ 19,183,143 | ||
Percentage of Private Education Loans in repayment, Year 1 | 59.00% | 59.60% | 58.20% | |
Percentage of Private Education Loans in repayment, Year 2 | 67.90% | 64.70% | 65.40% | |
Percentage of Private Education Loans in repayment, Year 3 | 74.30% | 71.30% | 71.20% | |
Percentage of Private Education Loans in repayment, Year 4 | 79.30% | 75.30% | 77.20% | |
Percentage of Private Education Loans in repayment, Year 5 | 82.90% | 80.00% | 82.20% | |
Percentage of Private Education Loans in repayment, Year 6 | 87.40% | 84.70% | 85.40% | |
Percentage of Private Education Loans in repayment | 74.90% | 72.50% | 72.40% | |
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 1 | 0.80% | 0.50% | 0.60% | |
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 2 | 1.40% | 1.20% | 1.20% | |
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 3 | 2.90% | 2.40% | 2.40% | |
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 4 | 3.70% | 3.20% | 3.20% | |
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 5 | 4.30% | 3.80% | 4.00% | |
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 6 | 5.20% | 4.80% | 5.00% | |
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, total | 3.30% | 2.80% | 2.80% | |
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 1 | 0.50% | 0.80% | 0.90% | |
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 2 | 1.90% | 3.40% | 3.30% | |
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 3 | 2.10% | 5.00% | 4.80% | |
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 4 | 2.30% | 5.90% | 5.20% | |
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 5 | 2.50% | 5.90% | 5.20% | |
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 6 | 2.10% | 4.90% | 4.70% | |
Loans in forbearance as a percentage of loans in repayment and forbearance | 1.90% | 4.30% | 4.10% | |
Student Loan | Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Private Education Loans in forbearance, Year 1 | $ 2,253,860 | $ 2,052,521 | $ 2,355,395 | |
Total Private Education Loans in forbearance, Year 2 | 2,826,916 | 2,603,996 | 3,199,351 | |
Total Private Education Loans in forbearance, Year 3 | 2,390,841 | 2,096,368 | 2,850,380 | |
Total Private Education Loans in forbearance, Year 4 | 1,840,790 | 1,912,370 | 2,651,946 | |
Total Private Education Loans in forbearance, Year 5 | 1,640,870 | 1,752,386 | 2,317,788 | |
Total Private Education Loans in forbearance, Year 6 | 4,557,935 | 3,887,180 | 3,412,810 | |
Private Education Loans in forbearance, total | 15,511,212 | 14,304,821 | 16,787,670 | |
Total Private Education Loans, gross, Year 1 | 3,822,361 | 3,442,765 | 4,047,048 | |
Total Private Education Loans, gross, Year 2 | 4,166,283 | 4,026,848 | 4,888,373 | |
Total Private Education Loans, gross, Year 3 | 3,216,525 | 2,940,511 | 4,003,485 | |
Total Private Education Loans, gross, Year 4 | 2,320,060 | 2,539,794 | 3,433,858 | |
Total Private Education Loans, gross, Year 5 | 1,978,233 | 2,189,222 | 2,821,172 | |
Total Private Education Loans, gross, Year 6 | 5,213,401 | 4,590,197 | 3,995,655 | |
Total Private Education Loans, gross | 20,716,863 | 19,729,337 | 23,189,591 | |
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 1 | 22,169 | 21,129 | 23,661 | |
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 2 | 16,067 | 13,933 | 17,699 | |
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 3 | 9,575 | 8,671 | 13,843 | |
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 4 | 5,918 | 6,708 | 12,304 | |
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 5 | 4,588 | 5,721 | 8,564 | |
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 6 | 9,171 | 7,313 | 5,153 | |
Private Education Loans deferred origination costs and unamortized premium/(discount), Total | 67,488 | 63,475 | 81,224 | |
Total Private Education Loans, Year 1 | 3,844,530 | 3,463,894 | 4,070,709 | |
Total Private Education Loans, Year 2 | 4,182,350 | 4,040,781 | 4,906,072 | |
Total Private Education Loans, Year 3 | 3,226,100 | 2,949,182 | 4,017,328 | |
Total Private Education Loans, Year 4 | 2,325,978 | 2,546,502 | 3,446,162 | |
Total Private Education Loans, Year 5 | 1,982,821 | 2,194,943 | 2,829,736 | |
Total Private Education Loans, Year 6 | 5,222,572 | 4,597,510 | 4,000,808 | |
Total Private Education Loans | 20,784,351 | 19,792,812 | 23,270,815 | |
Private Education Loans allowance for losses, Year 1 | (248,102) | (210,875) | (3,013) | |
Private Education Loans allowance for losses, Year 2 | (239,507) | (298,776) | (19,105) | |
Private Education Loans allowance for losses, Year 3 | (195,223) | (218,136) | (44,858) | |
Private Education Loans allowance for losses, Year 4 | (129,678) | (184,265) | (71,598) | |
Private Education Loans allowance for losses, Year 5 | (99,982) | (150,150) | (80,974) | |
Private Education Loans allowance for losses, Year 6 | (246,485) | (293,642) | (154,752) | |
Private Education Loans allowance for losses | (1,158,977) | (1,355,844) | (374,300) | |
Private Education Loans, net, Year 1 | 3,596,428 | 3,253,019 | 4,067,696 | |
Private Education Loans, net, Year 2 | 3,942,843 | 3,742,005 | 4,886,967 | |
Private Education Loans, net, Year 3 | 3,030,877 | 2,731,046 | 3,972,470 | |
Private Education Loans, net, Year 4 | 2,196,300 | 2,362,237 | 3,374,564 | |
Private Education Loans, net, Year 5 | 1,882,839 | 2,044,793 | 2,748,762 | |
Private Education Loans, net, Year 6 | 4,976,087 | 4,303,868 | 3,846,056 | |
Loans held for investment, net | 19,625,374 | 18,436,968 | 22,896,515 | |
Student Loan | Consumer Portfolio Segment | Loan delinquent, current | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 2,234,876 | 2,043,033 | 2,340,221 | |
Year 2 | 2,786,646 | 2,573,228 | 3,159,878 | |
Year 3 | 2,321,728 | 2,045,012 | 2,781,132 | |
Year 4 | 1,772,651 | 1,850,539 | 2,566,815 | |
Year 5 | 1,570,815 | 1,685,572 | 2,225,721 | |
Year 6 | 4,319,057 | 3,701,564 | 3,241,884 | |
Total | 15,005,773 | 13,898,948 | 16,315,651 | |
Student Loan | Consumer Portfolio Segment | Loan delinquent 30-59 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 15,148 | 6,400 | 11,152 | |
Year 2 | 29,146 | 16,983 | 26,096 | |
Year 3 | 46,616 | 26,934 | 44,382 | |
Year 4 | 43,197 | 30,771 | 51,656 | |
Year 5 | 41,695 | 33,040 | 54,559 | |
Year 6 | 132,757 | 91,400 | 100,206 | |
Total | 308,559 | 205,528 | 288,051 | |
Student Loan | Consumer Portfolio Segment | Loan delinquent 60-89 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 3,194 | 2,628 | 3,087 | |
Year 2 | 7,441 | 9,143 | 9,527 | |
Year 3 | 14,044 | 15,026 | 17,048 | |
Year 4 | 14,310 | 18,121 | 21,161 | |
Year 5 | 16,425 | 19,064 | 24,562 | |
Year 6 | 61,533 | 55,661 | 45,917 | |
Total | 116,947 | 119,643 | 121,302 | |
Student Loan | Consumer Portfolio Segment | Loan delinquent 90 days or greater past due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 642 | 460 | 935 | |
Year 2 | 3,683 | 4,642 | 3,850 | |
Year 3 | 8,453 | 9,396 | 7,818 | |
Year 4 | 10,632 | 12,939 | 12,314 | |
Year 5 | 11,935 | 14,710 | 12,946 | |
Year 6 | 44,588 | 38,555 | 24,803 | |
Total | 79,933 | 80,702 | 62,666 | |
Student Loan | Loans In-School/Grace/Deferment | Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 1,556,550 | 1,374,085 | 1,670,644 | |
Year 2 | 1,283,523 | 1,330,175 | 1,580,513 | |
Year 3 | 773,320 | 733,824 | 1,010,764 | |
Year 4 | 435,657 | 508,478 | 635,798 | |
Year 5 | 296,008 | 327,763 | 375,585 | |
Year 6 | 559,356 | 504,715 | 414,101 | |
Total | 4,904,414 | 4,779,040 | 5,687,405 | |
Student Loan | Loans In Forbearance | Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Private Education Loans in forbearance, Year 1 | 11,951 | 16,159 | 21,009 | |
Total Private Education Loans in forbearance, Year 2 | 55,844 | 92,677 | 108,509 | |
Total Private Education Loans in forbearance, Year 3 | 52,364 | 110,319 | 142,341 | |
Total Private Education Loans in forbearance, Year 4 | 43,613 | 118,946 | 146,114 | |
Total Private Education Loans in forbearance, Year 5 | 41,355 | 109,073 | 127,799 | |
Total Private Education Loans in forbearance, Year 6 | 96,110 | 198,302 | 168,744 | |
Private Education Loans in forbearance, total | 301,237 | 645,476 | 714,516 | |
Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans allowance for losses | $ (65,877) | |||
Student Loan, Borrowers Who Did Not Return To School And Received Extenstion | Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Private Education Loans in forbearance, Year 1 | $ 609,000 | |||
Student Loan, Borrowers Who Did Not Return To School And Received Extenstion | Loans In-School/Grace/Deferment | Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 401,000 | |||
Student Loan, Borrowers Who Did Not Return To School And Received Extenstion | Loans In Forbearance | Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Private Education Loans in forbearance, Year 1 | $ 30,000 |
Allowance for Credit Losses -_6
Allowance for Credit Losses - Accrued Interest Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Total Interest Receivable | $ 1,187,123 | $ 1,168,895 |
90 Days and Greater Past Due | 3,635 | 4,354 |
Allowance for Uncollectible Interest | $ 4,937 | $ 4,467 |
Unfunded Loan Commitments (Deta
Unfunded Loan Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Credit Loss [Abstract] | |||
Contractual obligation | $ 1,800,000 | ||
Allowance: | |||
Beginning balance | 110,044 | $ 2,481 | $ 2,165 |
Provisions for unfunded loan commitments | 232,822 | 311,659 | 5,937 |
Other provision items | 31,502 | 954 | 596 |
Transfer - funded loans | (301,655) | (320,808) | (6,217) |
Ending balance | 72,713 | 110,044 | 2,481 |
Unfunded Commitments | |||
Beginning balance | 1,673,018 | 1,910,603 | 2,010,744 |
Provision/New commitments - net | 5,512,841 | 5,070,175 | 5,513,790 |
Other provision items | 0 | 0 | 0 |
Transfer - funded loans | (5,408,883) | (5,307,760) | (5,613,931) |
Ending balance | $ 1,776,976 | 1,673,018 | 1,910,603 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance: | |||
Beginning balance | 115,758 | ||
Ending balance | 115,758 | ||
Unfunded Commitments | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||
Allowance: | |||
Beginning balance | 118,239 | ||
Ending balance | 118,239 | ||
Unfunded Commitments | |||
Beginning balance | $ 1,910,603 | ||
Ending balance | $ 1,910,603 |
Premises and Equipment, Net - S
Premises and Equipment, Net - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 253,321 | $ 238,099 |
Accumulated depreciation | (102,805) | (83,429) |
Premises and equipment, net | 150,516 | 154,670 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 12,356 | 12,356 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 122,300 | 120,971 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 29,955 | 28,272 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 88,710 | $ 76,500 |
Premises and Equipment, Net - A
Premises and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation of premises and equipment | $ 16,043 | $ 15,066 | $ 14,669 |
Deposits - Summary of Total Dep
Deposits - Summary of Total Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Deposits - interest bearing | $ 20,826,692 | $ 22,664,899 |
Deposits - non-interest bearing | 1,432 | 1,140 |
Total deposits | $ 20,828,124 | $ 22,666,039 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deposits [Abstract] | |||
Deposits | $ 20,828,124 | $ 22,666,039 | |
Brokered deposits | 10,100,000 | 11,900,000 | |
Retail and other deposits | 10,700,000 | 10,800,000 | |
Aggregate of deposits of individual depositors | 7,300,000 | 7,100,000 | |
Brokered deposit placement fee | 16,000 | 19,000 | $ 18,000 |
Third party broker fees paid | 13,000 | 5,000 | $ 28,000 |
Deposits exceeding FDIC insurance limits | 743,000 | 571,000 | |
Accrued interest on deposits | $ 35,000 | $ 50,000 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Interest-bearing Deposit Liabilities, Domestic, by Component [Abstract] | ||
Money market | $ 10,473,569 | $ 10,159,657 |
Savings | 959,122 | 907,976 |
Certificates of deposit | 9,394,001 | 11,597,266 |
Deposits - interest bearing | $ 20,826,692 | $ 22,664,899 |
Year-End Weighted Average Stated Rate | ||
Money market | 0.69% | 0.83% |
Savings | 0.43% | 0.55% |
Certificates of deposit | 1.20% | 1.34% |
Deposits - Certificates of Depo
Deposits - Certificates of Deposits Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
One year or less | $ 4,407,370 | $ 5,728,556 |
After one year to two years | 2,297,955 | 3,363,022 |
After two years to three years | 1,299,461 | 1,603,229 |
After three years to four years | 299,737 | 553,911 |
After four years to five years | 1,042,065 | 300,346 |
After five years | 47,413 | 48,202 |
Total | $ 9,394,001 | $ 11,597,266 |
Borrowings - Secured Borrowings
Borrowings - Secured Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Secured borrowings: | ||
Short-Term | $ 0 | $ 0 |
Long-Term | 5,930,990 | 5,189,217 |
Total | 5,930,990 | 5,189,217 |
ABCP borrowings | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Unsecured borrowings | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 986,138 | 692,879 |
Total | 986,138 | 692,879 |
Secured borrowings | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 4,944,852 | 4,496,338 |
Total | 4,944,852 | 4,496,338 |
Secured borrowings | Private Education Loan term securitizations: | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 4,944,852 | 4,496,338 |
Total | 4,944,852 | 4,496,338 |
Secured borrowings | ABCP borrowings | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 0 | 0 |
Total | 0 | 0 |
Secured borrowings | Fixed Income Interest Rate | Private Education Loan term securitizations: | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 3,897,996 | 3,261,233 |
Total | 3,897,996 | 3,261,233 |
Secured borrowings | Variable Income Interest Rate | Private Education Loan term securitizations: | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 1,046,856 | 1,235,105 |
Total | $ 1,046,856 | $ 1,235,105 |
Borrowings - Short Term Borrowi
Borrowings - Short Term Borrowings (Details) - USD ($) | Jul. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | |||
Short-Term | $ 0 | $ 0 | |
Weighted Average Interest Rate | 0.00% | ||
Average Balance | $ 122,396,000 | ||
Weighted Average Interest Rate(1) | 5.78% | ||
Maximum outstanding at any month end | $ 199,651,000 | 289,230,000 | |
Borrowing limit increase | 2,000,000,000 | 2,000,000,000 | |
Senior Unsecured Notes Due April 5, 2022 | |||
Short-term Debt [Line Items] | |||
Short-Term | $ 0 | ||
Weighted Average Interest Rate | 0.00% | ||
Average Balance | $ 122,396,000 | ||
Weighted Average Interest Rate(1) | 5.78% | ||
Secured Borrowing Facility | |||
Short-term Debt [Line Items] | |||
Short-Term | $ 0 | $ 0 | |
Contractual maturity related to ABCP facility | 2 years | ||
Weighted Average Interest Rate | 0.00% | 0.00% | |
Average Balance | $ 0 | $ 45,820,000 | |
Weighted Average Interest Rate(1) | 0.00% | 24.99% | |
Commercial Paper | Secured Borrowing Facility | |||
Short-term Debt [Line Items] | |||
Private education loan funding | $ 2,000,000,000 | ||
Ownership interest percentage | 100.00% | ||
Short-Term | $ 0 | $ 0 |
Borrowings - Long Term Borrowin
Borrowings - Long Term Borrowings (Details) - USD ($) | Nov. 15, 2021 | Nov. 09, 2021 | Nov. 01, 2021 | Aug. 18, 2021 | May 19, 2021 | Aug. 12, 2020 | Feb. 12, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Oct. 29, 2020 |
Debt Instrument [Line Items] | ||||||||||||||
Total Issued | $ 1,592,000,000 | $ 1,343,000,000 | ||||||||||||
Unsecured debt issued | $ 492,135,000 | $ 495,000,000 | $ 0 | |||||||||||
Estimated weighted average life of student loans | 4 years 8 months 12 days | 5 years 4 months 24 days | ||||||||||||
Senior Unsecured Notes Due April 5, 2022 | Unsecured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total Issued | $ 200,000,000 | |||||||||||||
Interest rate | 5.125% | |||||||||||||
Redemption price | 101.39% | |||||||||||||
Loss on early extinguishment of unsecured debt | $ (3,000,000) | |||||||||||||
Senior Unsecured Notes Due October 29, 2025 | Unsecured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total Issued | $ 495,000,000 | $ 500,000,000 | ||||||||||||
Interest rate | 4.20% | |||||||||||||
Senior Unsecured Notes Due November 2, 2026 | Unsecured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total Issued | $ 500,000,000 | 491,000,000 | ||||||||||||
Interest rate | 3.125% | |||||||||||||
Issuance price | 99.43% | |||||||||||||
2021-B | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total Issued | $ 531,000,000 | |||||||||||||
Private education loan term accounted for as a secured financing | $ 531,000,000 | |||||||||||||
Loans sold to third parties | $ 531,000,000 | |||||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||||
Unsecured debt issued | $ 529,000,000 | |||||||||||||
Estimated weighted average life of student loans | 4 years 3 months 3 days | |||||||||||||
Loans pledged as collateral | 496,000,000 | |||||||||||||
Principal amount of collateral | 467,000,000 | |||||||||||||
Capitalized interest | 29,000,000 | |||||||||||||
2021-B | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.77% | |||||||||||||
2021-D | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total Issued | $ 527,000,000 | |||||||||||||
Private education loan term accounted for as a secured financing | $ 527,000,000 | |||||||||||||
Loans sold to third parties | $ 527,000,000 | |||||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||||
Unsecured debt issued | $ 525,000,000 | |||||||||||||
Estimated weighted average life of student loans | 4 years 2 months 19 days | |||||||||||||
Loans pledged as collateral | 515,000,000 | |||||||||||||
Principal amount of collateral | 485,000,000 | |||||||||||||
Capitalized interest | 30,000,000 | |||||||||||||
2021-D | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.69% | |||||||||||||
2021-E | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total Issued | $ 534,000,000 | |||||||||||||
Private education loan term accounted for as a secured financing | $ 534,000,000 | |||||||||||||
Loans sold to third parties | $ 534,000,000 | |||||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||||
Unsecured debt issued | $ 532,000,000 | |||||||||||||
Estimated weighted average life of student loans | 4 years 1 month 24 days | |||||||||||||
Loans pledged as collateral | 533,000,000 | |||||||||||||
Principal amount of collateral | 502,000,000 | |||||||||||||
Capitalized interest | 31,000,000 | |||||||||||||
2021-E | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.69% | |||||||||||||
Private Education Loans 2020 Term A | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Private education loan term accounted for as a secured financing | $ 636,000,000 | |||||||||||||
Loans sold to third parties | $ 636,000,000 | |||||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||||
Unsecured debt issued | $ 634,000,000 | |||||||||||||
Estimated weighted average life of student loans | 4 years 2 months 4 days | |||||||||||||
Loans pledged as collateral | 496,000,000 | |||||||||||||
Principal amount of collateral | 469,000,000 | |||||||||||||
Capitalized interest | 27,000,000 | |||||||||||||
Private Education Loans 2020 Term A | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.88% | |||||||||||||
Private Education Loans 2020 Term B | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Private education loan term accounted for as a secured financing | $ 707,000,000 | |||||||||||||
Loans sold to third parties | $ 707,000,000 | |||||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||||
Unsecured debt issued | $ 705,000,000 | |||||||||||||
Estimated weighted average life of student loans | 4 years 1 month 20 days | |||||||||||||
Loans pledged as collateral | 615,000,000 | |||||||||||||
Principal amount of collateral | 581,000,000 | |||||||||||||
Capitalized interest | 34,000,000 | |||||||||||||
Private Education Loans 2020 Term B | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate | 1.30% | |||||||||||||
ABS Transactions | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Private education loan term accounted for as a secured financing | $ 6,900,000,000 | |||||||||||||
Private Education Loans | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Private education loan term accounted for as a secured financing | 3,600,000,000 | |||||||||||||
Principal amount of collateral | 3,500,000,000 | |||||||||||||
Capitalized interest | $ 141,000,000 |
Borrowings - Summary of Outstan
Borrowings - Summary of Outstanding Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Long-Term | $ 5,930,990 | $ 5,189,217 |
Weighted Average Interest Rate | 2.37% | 2.60% |
Average Balance | $ 5,167,682 | $ 4,748,871 |
Floating-rate borrowings | ||
Debt Instrument [Line Items] | ||
Long-Term | $ 1,046,857 | $ 1,235,105 |
Weighted Average Interest Rate | 1.05% | 1.09% |
Average Balance | $ 1,073,042 | $ 1,432,446 |
Fixed-rate borrowings | ||
Debt Instrument [Line Items] | ||
Long-Term | $ 4,884,133 | $ 3,954,112 |
Weighted Average Interest Rate | 2.65% | 3.08% |
Average Balance | $ 4,094,640 | $ 3,316,425 |
Borrowings - Stated Maturity an
Borrowings - Stated Maturity and Maturity to Call Date (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Stated maturity, 2022 | $ 3,636,488 |
Stated maturity, 2023 | 2,731,907 |
Stated maturity, 2024 | 1,924,122 |
Stated maturity, 2025 | 1,418,489 |
Stated maturity, 2026 | 2,151,693 |
Stated maturity, 2027 and after | 1,797,903 |
Maturity to call date, 2022 | 3,636,488 |
Maturity to Call Date, 2023 | 2,731,907 |
Maturity to Call Date, 2024 | 1,924,122 |
Maturity to Call Date, 2025 | 1,418,489 |
Maturity to Call Date, 2026 | 2,151,693 |
Maturity to Call Date, 2027 and after | 1,797,903 |
Total principal amount, maturity to call date | 13,660,602 |
Hedge accounting adjustments | 33,426 |
Total principal amount, after adjustments | 13,694,028 |
Brokered Deposits | |
Debt Instrument [Line Items] | |
Stated maturity, 2022 | 2,918,335 |
Stated maturity, 2023 | 2,033,829 |
Stated maturity, 2024 | 1,236,522 |
Stated maturity, 2025 | 270,174 |
Stated maturity, 2026 | 1,033,313 |
Stated maturity, 2027 and after | 47,401 |
Maturity to call date, 2022 | 2,918,335 |
Maturity to Call Date, 2023 | 2,033,829 |
Maturity to Call Date, 2024 | 1,236,522 |
Maturity to Call Date, 2025 | 270,174 |
Maturity to Call Date, 2026 | 1,033,313 |
Maturity to Call Date, 2027 and after | 47,401 |
Total principal amount, maturity to call date | 7,539,574 |
Hedge accounting adjustments | 33,426 |
Total principal amount, after adjustments | 7,573,000 |
Unsecured Debt | |
Debt Instrument [Line Items] | |
Stated maturity, 2022 | 0 |
Stated maturity, 2023 | 0 |
Stated maturity, 2024 | 0 |
Stated maturity, 2025 | 500,000 |
Stated maturity, 2026 | 500,000 |
Stated maturity, 2027 and after | 0 |
Maturity to call date, 2022 | 0 |
Maturity to Call Date, 2023 | 0 |
Maturity to Call Date, 2024 | 0 |
Maturity to Call Date, 2025 | 500,000 |
Maturity to Call Date, 2026 | 500,000 |
Maturity to Call Date, 2027 and after | 0 |
Total principal amount, maturity to call date | 1,000,000 |
Hedge accounting adjustments | 0 |
Total principal amount, after adjustments | 1,000,000 |
Secured Borrowings | |
Debt Instrument [Line Items] | |
Stated maturity, 2022 | 718,153 |
Stated maturity, 2023 | 698,078 |
Stated maturity, 2024 | 687,600 |
Stated maturity, 2025 | 648,315 |
Stated maturity, 2026 | 618,380 |
Stated maturity, 2027 and after | 1,750,502 |
Maturity to call date, 2022 | 718,153 |
Maturity to Call Date, 2023 | 698,078 |
Maturity to Call Date, 2024 | 687,600 |
Maturity to Call Date, 2025 | 648,315 |
Maturity to Call Date, 2026 | 618,380 |
Maturity to Call Date, 2027 and after | 1,750,502 |
Total principal amount, maturity to call date | 5,121,028 |
Hedge accounting adjustments | 0 |
Total principal amount, after adjustments | $ 5,121,028 |
Borrowings - Secured Financing
Borrowings - Secured Financing (Details) - USD ($) | 1 Months Ended | ||||||
Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Aug. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||||
Total Issued | $ 1,592,000,000 | $ 1,343,000,000 | |||||
Total loans and accrued interest amount securitized at inception | 1,656,263,000 | $ 1,463,230,000 | |||||
2020-A | |||||||
Debt Instrument [Line Items] | |||||||
Total Issued | $ 636,000,000 | ||||||
Basis spread on variable rate | 0.88% | ||||||
Weighted Average Life (in years) | 4 years 2 months 4 days | ||||||
2020-B | |||||||
Debt Instrument [Line Items] | |||||||
Total Issued | $ 707,000,000 | ||||||
Basis spread on variable rate | 1.30% | ||||||
Weighted Average Life (in years) | 4 years 1 month 20 days | ||||||
2021-B | |||||||
Debt Instrument [Line Items] | |||||||
Total Issued | $ 531,000,000 | ||||||
Basis spread on variable rate | 0.77% | ||||||
Weighted Average Life (in years) | 4 years 3 months 3 days | ||||||
Loans Pledged as Collateral | 496,000,000 | ||||||
Principal amount of collateral | 467,000,000 | ||||||
Capitalized interest | 29,000,000 | ||||||
2021-D | |||||||
Debt Instrument [Line Items] | |||||||
Total Issued | $ 527,000,000 | ||||||
Basis spread on variable rate | 0.69% | ||||||
Weighted Average Life (in years) | 4 years 2 months 19 days | ||||||
Loans Pledged as Collateral | 515,000,000 | ||||||
Principal amount of collateral | 485,000,000 | ||||||
Capitalized interest | 30,000,000 | ||||||
2021-E | |||||||
Debt Instrument [Line Items] | |||||||
Total Issued | $ 534,000,000 | ||||||
Basis spread on variable rate | 0.69% | ||||||
Weighted Average Life (in years) | 4 years 1 month 24 days | ||||||
Loans Pledged as Collateral | 533,000,000 | ||||||
Principal amount of collateral | 502,000,000 | ||||||
Capitalized interest | 31,000,000 | ||||||
Private Education Loan term securitizations | |||||||
Debt Instrument [Line Items] | |||||||
Loans Pledged as Collateral | 1,110,000,000 | ||||||
Principal amount of collateral | 1,050,000,000 | ||||||
Capitalized interest | $ 62,000,000 |
Borrowings - Variable Interest
Borrowings - Variable Interest Entity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Outstanding | |||
Short-Term | $ 0 | $ 0 | |
Long-Term | 5,930,990 | 5,189,217 | |
Total | 5,930,990 | 5,189,217 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Restricted Cash | 210,741 | 154,417 | $ 156,883 |
Other assets | 26,351 | 19,533 | |
Total | 29,221,899 | 30,770,423 | |
Secured Borrowing Facility | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 4,994,852 | 4,496,338 | |
Total | 4,994,852 | 4,496,338 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 6,029,034 | 5,661,123 | |
Restricted Cash | 210,741 | 154,417 | |
Other assets | 358,849 | 357,403 | |
Total | 6,598,624 | 6,172,943 | |
Variable Interest Entity, Primary Beneficiary | Private Education Loan term securitizations: | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 4,994,852 | 4,496,338 | |
Total | 4,994,852 | 4,496,338 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 6,029,034 | 5,661,123 | |
Restricted Cash | 210,741 | 154,417 | |
Other assets | 357,982 | 356,967 | |
Total | 6,597,757 | 6,172,507 | |
Variable Interest Entity, Primary Beneficiary | Secured Borrowing Facility | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 0 | 0 | |
Total | 0 | 0 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 0 | 0 | |
Restricted Cash | 0 | 0 | |
Other assets | 867 | 436 | |
Total | $ 867 | $ 436 |
Borrowings - Unconsolidated VIE
Borrowings - Unconsolidated VIEs (Details) - USD ($) $ in Millions | May 27, 2021 | Feb. 09, 2021 | Mar. 31, 2020 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Vertical risk retention interest | 5.00% | 5.00% | ||
2021-A | ||||
Debt Instrument [Line Items] | ||||
Vertical risk retention interest | 5.00% | |||
2021-A | Student Loan | ||||
Debt Instrument [Line Items] | ||||
Private education loans sold | $ 2,500 | |||
Additional net proceeds from sales of loans held for investment, capitalized interest | 130 | |||
Gain on sale | $ 18 | |||
2021-C | ||||
Debt Instrument [Line Items] | ||||
Vertical risk retention interest | 5.00% | |||
2021-C | Student Loan | ||||
Debt Instrument [Line Items] | ||||
Private education loans sold | $ 505 | |||
Additional net proceeds from sales of loans held for investment, capitalized interest | 27 | |||
Gain on sale | $ 4 |
Borrowings - Summary of Exposur
Borrowings - Summary of Exposure Related to Unconsolidated VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Estimated Fair Value | $ 2,517,956 | $ 1,996,634 | ||
Allowance for credit losses on unfunded commitments | 72,713 | 110,044 | $ 2,481 | $ 2,165 |
Variable Interest Entity, Not Primary Beneficiary | Private Education Loan term securitizations: | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 192,245 | 68,908 | ||
Equity Interests | 37,465 | 16,923 | ||
Allowance for credit losses on unfunded commitments | $ 229,710 | $ 85,831 |
Borrowings - Other Borrowing So
Borrowings - Other Borrowing Sources (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Discretionary uncommitted federal funds line of credit | $ 125,000,000 | |
Lendable value of collateral | $ 3,300,000,000 | $ 3,800,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)numberOfCounterparties | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | ||
Number of central counterparties | numberOfCounterparties | 2 | |
Notional derivative contracts | $ 6,589,856 | $ 8,557,883 |
Net positive exposure | 9,000 | 43,000 |
Estimated reclassification of AOCI to interest expense | 13,000 | |
Cash collateral pledged | 10,000 | 43,000 |
CME | ||
Derivative [Line Items] | ||
Notional derivative contracts | $ 5,200,000 | |
Notional derivative contracts, percent | 94.40% | |
Amount of variation margin included as settlement | $ (72,000) | |
LCH | ||
Derivative [Line Items] | ||
Notional derivative contracts | $ 300,000 | |
Notional derivative contracts, percent | 5.60% | |
Amount of variation margin included as settlement | $ 8,000 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional derivative contracts | $ 5,536,096 | $ 8,557,883 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | $ 1,070 | $ 442 |
Trading | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | 1,322 | 135 |
Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | (231) | (287) |
Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | (21) | 594 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 5 | 729 |
Derivative instruments | (252) | (287) |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 5 | 135 |
Derivative instruments | 0 | 0 |
Interest rate swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 0 | 0 |
Derivative instruments | (231) | (287) |
Interest rate swaps | Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 0 | 594 |
Derivative instruments | (21) | 0 |
Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 1,317 | 0 |
Other | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 1,317 | 0 |
Other | Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 0 | 0 |
Other | Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities | ||
Cash collateral pledged | $ 10,000 | $ 43,000 |
Other Assets | ||
Other Assets | ||
Gross position | 1,322 | 729 |
Impact of master netting agreement | (5) | (176) |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 1,317 | 553 |
Cash collateral pledged | 9,655 | 42,874 |
Net position | 10,972 | 43,427 |
Other Liabilities | ||
Other Liabilities | ||
Gross position | (252) | (287) |
Impact of master netting agreement | 5 | 176 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | (247) | (111) |
Cash collateral pledged | 0 | 0 |
Net position | $ (247) | $ (111) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | $ 6,589,856 | $ 8,557,883 |
Trading | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 1,235,713 | 2,693,364 |
Cash Flow | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 1,438,144 | 1,018,976 |
Fair Value | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 3,915,999 | 4,845,543 |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 5,536,096 | 8,557,883 |
Interest Rate Swaps | Trading | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 181,953 | 2,693,364 |
Interest Rate Swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 1,438,144 | 1,018,976 |
Interest Rate Swaps | Fair Value | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 3,915,999 | 4,845,543 |
Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 1,053,760 | 0 |
Other | Trading | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 1,053,760 | 0 |
Other | Cash Flow | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 0 | 0 |
Other | Fair Value | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | $ 0 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Hedged Items Recorded in Statement of Financial Position (Details) - Deposits - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Carrying Amount of the Hedged Assets/(Liabilities) | $ (3,963,268) | $ (4,992,867) |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | $ (50,784) | $ (154,235) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow Hedges | |||
Interest expense | $ 382,078 | $ 541,667 | $ 707,717 |
Trading | |||
Total | 41,801 | 66,164 | 12,789 |
Designated as Hedging Instrument | |||
Fair Value Hedges | |||
Interest recognized on derivatives | 85,850 | 71,668 | (8,806) |
Hedged items recorded in interest expense | 103,450 | (91,087) | (77,350) |
Derivatives recorded in interest expense | (103,431) | 91,419 | 77,177 |
Trading | |||
Total | 85,869 | 72,000 | (8,979) |
Designated as Hedging Instrument | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | |||
Cash Flow Hedges | |||
Interest expense | (20,852) | (16,000) | 2,299 |
Trading | |||
Trading | |||
Change in fair value of future interest payments recorded in earnings | (23,216) | 10,164 | 19,469 |
Total | $ (23,216) | $ 10,164 | $ 19,469 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Changes in Stockholders' Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Amount of gain (loss) recognized in other comprehensive income (loss) | $ 27,259 | $ (52,511) | $ (36,115) |
Less: Amount of gain (loss) reclassified in interest expense | (20,852) | (16,000) | 2,299 |
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit | $ 48,111 | $ (36,511) | $ (38,414) |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2020 | Oct. 31, 2020 | |
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 | |||
Common stock, shares issued (in shares) | 432,000,000 | 456,700,000 | |||
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 | |||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 432.0 million and 456.7 million shares issued, respectively | $ 86,403 | $ 91,346 | |||
Common stock dividend per common share | $ 0.20 | $ 0.12 | $ 0.12 | ||
Series B Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | 2,500,000 | 2,500,000 | |||
Preferred stock liquidation preference (in dollars per share) | $ 100 | ||||
Common stock, shares authorized (in shares) | 2,000,000 | ||||
Common stock, shares issued (in shares) | 1,489,304 | ||||
Common stock, par value (in dollars per share) | $ 45 | ||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 432.0 million and 456.7 million shares issued, respectively | $ 68,000 | ||||
Series B Preferred Stock | Three Month LIBOR | |||||
Class of Stock [Line Items] | |||||
Preferred stock dividend rate (as a percentage) | 1.70% | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 1,125,000,000 | ||||
Common stock, shares issued (in shares) | 279,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.20 | ||||
Common stock shares outstanding (in shares) | 279,000,000 | ||||
Common shares unissued but encumbered (in shares) | 41,000,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Tender Offer (Details) - USD ($) | Mar. 16, 2021 | Mar. 10, 2021 | Jan. 28, 2021 | Mar. 10, 2020 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 02, 2021 |
Class of Stock [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | ||||||
Common stock repurchased (in shares) | 13,000,000 | 45,000,000 | 98,748,905 | 47,736,847 | 16,962,199 | ||||
Average purchase price per share (in dollars per share) | $ 14.70 | $ 10.93 | $ 10.85 | ||||||
Common stock repurchased | $ 1,530,683,000 | $ 558,167,000 | $ 167,201,000 | ||||||
Shares cancelled (in shares) | 28,500,000 | ||||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock repurchased (in shares) | 70,246,445 | 47,736,847 | 16,962,199 | ||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 | |||||||
Tender Offer | Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Decrease to balance of common stock | $ 6,000,000 | ||||||||
Tender Offer | Additional Paid-In Capital | |||||||||
Class of Stock [Line Items] | |||||||||
Decrease to balance of common stock | $ 466,000,000 | ||||||||
Tender Offer | Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Aggregate purchase price (not to exceed) | $ 1,000,000,000 | ||||||||
Common stock, par value (in dollars per share) | $ 0.20 | ||||||||
Common stock repurchased (in shares) | 28,500,000 | ||||||||
Average purchase price per share (in dollars per share) | $ 16.50 | ||||||||
Common stock repurchased | $ 472,000,000 | ||||||||
Rule 10b5-1 Trading Plan | Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock repurchased (in shares) | 57,000,000 | ||||||||
Payment for delivery of common stock | $ 1,100,000,000 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases (Details) - USD ($) | Jan. 28, 2021 | Mar. 11, 2020 | Mar. 10, 2020 | Mar. 31, 2021 | Jan. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 26, 2022 | Oct. 20, 2021 | Jan. 27, 2021 | Jan. 22, 2020 | Jan. 23, 2019 |
Class of Stock [Line Items] | |||||||||||||
Common stock repurchased (in shares) | 13,000,000 | 45,000,000 | 98,748,905 | 47,736,847 | 16,962,199 | ||||||||
Average purchase price per share (in dollars per share) | $ 14.70 | $ 10.93 | $ 10.85 | ||||||||||
2019 Share Repurchase Program | Common Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Aggregate purchase price (not to exceed) | $ 200,000,000 | ||||||||||||
Common stock repurchased (in shares) | 3,000,000 | 17,000,000 | |||||||||||
Repurchase amount (in dollars per share) | $ 33,000,000 | $ 167,000,000 | |||||||||||
2020 Share Repurchase Program | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Aggregate purchase price (not to exceed) | $ 600,000,000 | ||||||||||||
2020 Share Repurchase Program | Common Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock repurchased (in shares) | 45,000,000 | 4,000,000 | 58,000,000 | ||||||||||
Payment for delivery of common stock | $ 525,000,000 | $ 75,000,000 | |||||||||||
Additional shares repurchased | 13,000,000 | ||||||||||||
Average purchase price per share (in dollars per share) | $ 9.01 | ||||||||||||
2021 Share Repurchase Program | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Remaining capacity | $ 38,000,000 | ||||||||||||
2021 Share Repurchase Program | Common Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Aggregate purchase price (not to exceed) | $ 1,500,000,000 | $ 1,250,000,000 | |||||||||||
Common stock repurchased (in shares) | 81,100,000 | ||||||||||||
Payment for delivery of common stock | $ 1,460,000,000 | ||||||||||||
Number of additional shares authorized to be repurchased | $ 250,000,000 | ||||||||||||
2022 Share Repurchase Program | Common Stock | Subsequent Event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Aggregate purchase price (not to exceed) | $ 1,250,000,000 |
Stockholders' Equity - Common_2
Stockholders' Equity - Common Stock Repurchased (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 28, 2021 | Mar. 10, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | |||||
Common stock repurchased (in shares) | 13,000,000 | 45,000,000 | 98,748,905 | 47,736,847 | 16,962,199 |
Average purchase price per share (in dollars per share) | $ 17.37 | $ 9.66 | $ 9.86 | ||
Shares repurchased related to employee stock-based compensation plans (in shares) | 1,368,942 | 1,197,843 | 1,369,630 | ||
Average purchase price per share (in dollars per share) | $ 14.70 | $ 10.93 | $ 10.85 | ||
Common shares issued (in shares) | 3,786,581 | 3,129,325 | 3,743,705 | ||
Shares related to settlement of common stock tender offer | 28,500,000 | ||||
2021 Share Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Remaining capacity | $ 38 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | Dec. 31, 2021$ / shares |
Common Stock | |
Class of Stock [Line Items] | |
Share price (in dollars per share) | $ 19.67 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||||||||||
Net income | $ 306,265 | $ 72,840 | $ 140,201 | $ 641,207 | $ 432,700 | $ 171,028 | $ (85,211) | $ 362,173 | $ 1,160,513 | $ 880,690 | $ 578,276 |
Preferred stock dividends | 1,177 | 1,166 | 1,192 | 1,201 | 1,734 | 2,058 | 2,478 | 3,464 | 4,736 | 9,734 | 16,837 |
Net income (loss) attributable to SLM Corporation common stock | 305,088 | 71,674 | 139,009 | 640,006 | 430,966 | 168,970 | (87,689) | 358,709 | 1,155,777 | 870,956 | 561,439 |
Net income attributable to SLM Corporation common stock | $ 305,088 | $ 71,674 | $ 139,009 | $ 640,006 | $ 430,966 | $ 168,970 | $ (87,689) | $ 358,709 | $ 1,155,777 | $ 870,956 | $ 561,439 |
Denominator: | |||||||||||
Weighted average shares used to compute basic EPS (in shares) | 314,993,000 | 383,705,000 | 427,292,000 | ||||||||
Effect of dilutive securities: | |||||||||||
Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 4,919,000 | 3,490,000 | 3,382,000 | ||||||||
Weighted average shares used to compute diluted EPS (in shares) | 319,912,000 | 387,195,000 | 430,674,000 | ||||||||
Basic earnings per common share (in usd per share) | $ 1.06 | $ 0.24 | $ 0.45 | $ 1.77 | $ 1.15 | $ 0.45 | $ (0.23) | $ 0.88 | $ 3.67 | $ 2.27 | $ 1.31 |
Diluted earnings per common share (in usd per share) | $ 1.04 | $ 0.24 | $ 0.44 | $ 1.75 | $ 1.13 | $ 0.45 | $ (0.23) | $ 0.87 | $ 3.61 | $ 2.25 | $ 1.30 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,000,000 | 0 | 0 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans and Arrangements - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)compensation_planshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of active stock-based compensation plans | compensation_plan | 1 | ||
Stock-based compensation cost | $ 30,649,000 | $ 36,464,000 | $ 30,600,000 |
Unrecognized compensation cost | $ 18,000,000 | ||
Weighted average period for total unrecognized compensation cost | 1 year 4 months 24 days | ||
Options granted in period (in shares) | shares | 998,891 | 0 | 0 |
Options granted, exercise price multiplier | 115.00% | ||
Vesting percentage | 100.00% | ||
Offering period of employee stock purchase plan | 12 months | ||
Maximum contribution amount per employee to ESPP | $ 7,500 | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be issued under plan (in shares) | shares | 14,000,000 | ||
Unrecognized compensation cost | $ 1,000,000 | ||
Percentage of discount available to employees under ESPP | 15.00% | ||
Expected dividend rate | 0.66% | 1.76% | 1.34% |
Vesting period | 1 year | ||
Company's common stock purchased by ESPP participants (in shares) | shares | 496,000 | 0 | 0 |
Performance Vesting Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 400,000 | ||
Weighted average period for total unrecognized compensation cost | 4 months 24 days | ||
Vesting period | 1 year | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2021 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be issued under plan (in shares) | shares | 21,000,000 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans and Arrangements - Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | |||
Beginning balance (in shares) | 241,675 | ||
Granted (in shares) | 998,891 | ||
Exercised (in shares) | (236,275) | ||
Canceled (in shares) | (5,400) | ||
Ending balance (in shares) | 998,891 | 241,675 | |
Exercisable (in shares) | 0 | ||
Weighted Average Exercise Price per Share | |||
Beginning balance (in dollars per share) | $ 5.24 | ||
Granted (in dollars per share) | 17.65 | ||
Exercised (in dollars per share) | 5.24 | ||
Canceled (in dollars per share) | 5.24 | ||
Ending balance (in dollars per share) | 17.65 | $ 5.24 | |
Exercisable (in dollars per share) | $ 0 | ||
Weighted Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term, Outstanding, ending balance | 2 years | ||
Weighted Average Remaining Contractual Term, Exercisable, ending balance | 0 years | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, Outstanding, ending balance | $ 2,018,000 | ||
Aggregate Intrinsic Value, Exercisable, ending balance | 0 | ||
Total intrinsic value of options exercised | 2,000,000 | $ 3,000,000 | $ 4,000,000 |
Cash received from option exercises | 0 | ||
Tax benefit from exercise of stock options | $ 1,000,000 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans and Arrangements - Restricted Stock and Performance Stock Unit Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Grant Date Fair Value | |||
Unrecognized compensation cost | $ 18 | ||
Weighted average period for total unrecognized compensation cost | 1 year 4 months 24 days | ||
Restricted Stock | |||
Number of Shares | |||
Beginning balance (in shares) | 143,033 | ||
Granted (in shares) | 54,098 | ||
Vested (in shares) | (143,033) | ||
Canceled (in shares) | (4,918) | ||
Ending balance (in shares) | 49,180 | 143,033 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 7.69 | ||
Granted (in dollars per share) | 20.33 | ||
Vested (in dollars per share) | 7.69 | ||
Canceled (in dollars per share) | 20.33 | ||
Ending balance (in dollars per share) | $ 20.33 | $ 7.69 | |
Fair value of shares vested | $ 1 | $ 1 | $ 1 |
Unrecognized compensation cost | $ 0.4 | ||
Weighted average period for total unrecognized compensation cost | 4 months 24 days | ||
Restricted Stock Units And Performance Stock Units | |||
Number of Shares | |||
Beginning balance (in shares) | 6,721,505 | ||
Granted (in shares) | 1,673,427 | ||
Vested (in shares) | (2,944,877) | ||
Canceled (in shares) | (141,559) | ||
Ending balance (in shares) | 5,308,496 | 6,721,505 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 10.41 | ||
Granted (in dollars per share) | 15.51 | ||
Vested (in dollars per share) | 10.64 | ||
Canceled (in dollars per share) | 12.85 | ||
Ending balance (in dollars per share) | $ 11.83 | $ 10.41 | |
Fair value of restricted stock units that vested and converted to common stock | $ 31 | $ 26 | $ 27 |
Unrecognized compensation cost | $ 15 | ||
Weighted average period for total unrecognized compensation cost | 1 year 4 months 24 days |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans and Arrangements - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.07% | 0.12% | 1.87% |
Expected volatility | 34.00% | 49.00% | 29.00% |
Expected dividend rate | 0.66% | 1.76% | 1.34% |
Expected life of the option (in years) | 1 year | 1 year | 1 year |
Weighted average fair value of stock purchase rights (in dollars per share) | $ 4.93 | $ 1.74 | $ 1.77 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Trading investments | $ 37,465 | $ 16,923 |
Available-for-sale investments | 2,517,956 | 1,996,634 |
Fair Value Measurements Recurring | ||
Assets: | ||
Trading investments | 37,465 | 16,923 |
Available-for-sale investments | 2,517,956 | 1,996,634 |
Derivative instruments | 1,322 | 729 |
Total | 2,556,743 | 2,014,286 |
Liabilities: | ||
Derivative instruments | (252) | (287) |
Fair Value Measurements Recurring | Level 1 | ||
Assets: | ||
Trading investments | 0 | 0 |
Available-for-sale investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Fair Value Measurements Recurring | Level 2 | ||
Assets: | ||
Trading investments | 0 | 0 |
Available-for-sale investments | 2,517,956 | 1,996,634 |
Derivative instruments | 1,322 | 729 |
Total | 2,519,278 | 1,997,363 |
Liabilities: | ||
Derivative instruments | (252) | (287) |
Fair Value Measurements Recurring | Level 3 | ||
Assets: | ||
Trading investments | 37,465 | 16,923 |
Available-for-sale investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total | 37,465 | 16,923 |
Liabilities: | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Earning assets: | ||
Loans held for sale | $ 0 | $ 340,389 |
Trading investments | 37,465 | 16,923 |
Accrued interest receivable, difference | 100,743 | 140,511 |
Tax indemnification receivable | 239,578 | 374,706 |
Total earning assets, difference | 3,409,977 | 4,182,834 |
Interest-bearing liabilities: | ||
Long-term borrowings, difference | (69,184) | (209,092) |
Total interest-bearing liabilities, difference | (151,510) | (479,976) |
Excess of net asset fair value over carrying value | 3,258,467 | 3,702,858 |
Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Certificates of deposits, difference | (24,799) | (68,927) |
Certificates of Deposit | ||
Interest-bearing liabilities: | ||
Certificates of deposits, difference | (57,527) | (201,957) |
Fair Value | ||
Earning assets: | ||
Loans held for sale | 0 | 3,226,029 |
Cash and cash equivalents | 4,334,603 | 4,455,292 |
Trading investments | 37,465 | 16,923 |
Available-for-sale investments | 2,517,956 | 1,996,634 |
Accrued interest receivable | 1,306,410 | 1,527,816 |
Tax indemnification receivable | 8,047 | 18,492 |
Derivative instruments | 1,322 | 729 |
Total | 31,856,320 | 34,126,992 |
Interest-bearing liabilities: | ||
Short-term borrowings | 0 | 0 |
Long-term borrowings | 6,000,174 | 5,398,309 |
Accrued interest payable | 46,600 | 60,272 |
Derivative instruments | 252 | 287 |
Total interest-bearing liabilities | 26,956,044 | 28,394,651 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits | 11,457,490 | 11,136,560 |
Fair Value | Certificates of Deposit | ||
Interest-bearing liabilities: | ||
Deposits | 9,451,528 | 11,799,223 |
Carrying Value | ||
Earning assets: | ||
Loans held for sale | 0 | 2,885,640 |
Cash and cash equivalents | 4,334,603 | 4,455,292 |
Trading investments | 37,465 | 16,923 |
Available-for-sale investments | 2,517,956 | 1,996,634 |
Accrued interest receivable | 1,205,667 | 1,387,305 |
Tax indemnification receivable | 8,047 | 18,492 |
Derivative instruments | 1,322 | 729 |
Total | 28,446,343 | 29,944,158 |
Interest-bearing liabilities: | ||
Short-term borrowings | 0 | 0 |
Long-term borrowings | 5,930,990 | 5,189,217 |
Accrued interest payable | 46,600 | 60,272 |
Derivative instruments | 252 | 287 |
Total interest-bearing liabilities | 26,804,534 | 27,914,675 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits | 11,432,691 | 11,067,633 |
Carrying Value | Certificates of Deposit | ||
Interest-bearing liabilities: | ||
Deposits | 9,394,001 | 11,597,266 |
Private Education Loans | ||
Earning assets: | ||
Loans held for investment, net, difference | 3,294,462 | 3,687,203 |
Private Education Loans | Fair Value | ||
Earning assets: | ||
Private Education Loans | 22,919,836 | 22,124,171 |
Private Education Loans | Carrying Value | ||
Earning assets: | ||
Private Education Loans | 19,625,374 | 18,436,968 |
FFELP Loans | ||
Earning assets: | ||
Loans held for investment, net, difference | 12,690 | 13,449 |
FFELP Loans | Fair Value | ||
Earning assets: | ||
Private Education Loans | 705,644 | 748,657 |
FFELP Loans | Carrying Value | ||
Earning assets: | ||
Private Education Loans | 692,954 | 735,208 |
Credit Cards | ||
Earning assets: | ||
Loans held for investment, net, difference | 2,082 | 1,282 |
Credit Cards | Fair Value | ||
Earning assets: | ||
Private Education Loans | 25,037 | 12,249 |
Credit Cards | Carrying Value | ||
Earning assets: | ||
Private Education Loans | $ 22,955 | $ 10,967 |
Arrangements with Navient Cor_2
Arrangements with Navient Corporation (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Apr. 30, 2014 |
Related Party Transactions [Abstract] | ||
Remaining balance of indemnification receivable in connection with the spin-off | $ 5 | $ 27 |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Allowance for credit losses on loans and leases | $ 1,165,335 | $ 1,361,723 | $ 441,912 | $ 341,121 | |
Allowance for credit losses on unfunded commitments | 72,713 | 110,044 | 2,481 | $ 2,165 | |
Accounting Standards Update 2016-13 | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Period of deferment | 2 years | ||||
Amount deferred | 25.00% | ||||
Allowance for credit losses on loans and leases | $ 1,100,000 | ||||
Allowance for credit losses on unfunded commitments | 116,000 | ||||
Deferred tax asset | 306,000 | ||||
Reduction to retained earnings | $ 953,000 | ||||
Sallie Mae Bank | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Dividends | $ 1,400,000 | $ 579,000 | $ 254,000 |
Regulatory Capital - Well Capit
Regulatory Capital - Well Capitalized Regulatory Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Actual Amount | ||
Tier 1 Capital (to Average Assets) | $ 3,314,657 | $ 3,579,005 |
Tier 1 Capital (to Risk-Weighted Assets) | 3,314,657 | 3,579,005 |
Total Capital (to Risk-Weighted Assets) | 3,410,183 | 3,849,820 |
Tier 1 Capital (to Average Assets) | $ 3,314,657 | $ 3,579,005 |
Actual Ratio | ||
Tier 1 Capital (to Average Assets) | 14.10% | 14.00% |
Tier 1 Capital (to Risk-Weighted Assets) | 0.141 | 0.140 |
Total Capital (to Risk-Weighted Assets) | 0.145 | 0.150 |
Tier 1 Capital (to Average Assets) | 0.111 | 0.113 |
Well Capitalized Regulatory Requirements, Amount | ||
Tier 1 Capital (to Average Assets) | $ 1,643,132 | $ 1,794,780 |
Tier 1 Capital (to Risk-Weighted Assets) | 1,995,232 | 2,179,375 |
Total Capital (to Risk-Weighted Assets) | 2,464,699 | 2,692,169 |
Tier 1 Capital (to Average Assets) | $ 1,198,808 | $ 1,264,424 |
Well Capitalized Regulatory Requirements, Ratio | ||
Tier 1 Capital (to Average Assets) | 7.00% | 7.00% |
Tier 1 Capital (to Risk-Weighted Assets) | 0.085 | 0.085 |
Total Capital (to Risk-Weighted Assets) | 0.105 | 0.105 |
Tier 1 Capital (to Average Assets) | 0.040 | 0.040 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - Sallie Mae 401(k) Savings Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution percentage | 100.00% | ||
Type 1 of defined benefit contribution (up to) | 5.00% | ||
Employer contribution amount | $ 7 | $ 8 | $ 7 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligation | $ 1,800 |
Other liabilities reserve | $ 73 |
Loss emergence period | 1 year |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of Statutory U.S. Federal Income Tax Rates to Our Effective Tax Rate for Continuing Operations (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
State tax, net of federal benefit | 3.10% | 2.90% | 3.90% |
Business tax credits | (0.80%) | (2.20%) | (3.50%) |
Reverse federal impact of indemnification adjustments | 0.10% | 0.20% | 0.30% |
Unrecognized tax benefits, U.S. federal and state, net of federal benefit | 0.40% | 0.70% | (0.10%) |
Other, net | 0.90% | 1.10% | 0.70% |
Effective tax rate | 24.70% | 23.70% | 22.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Statutory U.S. federal rate | 21.00% | 21.00% | 21.00% | |
Operating loss carryforwards, valuation allowance | $ 286,000 | $ 277,000 | ||
Valuation allowance | 285,000 | 277,000 | ||
Capital loss | 16,000 | 16,000 | ||
Unrecognized tax benefits | 75,328 | 63,134 | $ 53,509 | $ 52,159 |
Unrecognized tax benefits recognition impact on effective tax rate | 65,000 | |||
Interest on income taxes accrued net of related benefit | 10,000 | 11,000 | 12,000 | |
Interest on income tax expense net of related tax benefit | (1,000) | $ (1,000) | $ (1,000) | |
Possible decrease in uncertain tax position | $ 6,000 | |||
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Combination of subsidiaries | 3 years | |||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Combination of subsidiaries | 4 years |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current provision (benefit): | |||||||||||
Federal | $ 259,536 | $ 172,153 | $ 150,800 | ||||||||
State | 64,843 | 28,387 | 24,378 | ||||||||
Total current provision (benefit) | 324,379 | 200,540 | 175,178 | ||||||||
Deferred provision (benefit): | |||||||||||
Federal | 47,240 | 58,003 | (8,240) | ||||||||
State | 8,132 | 14,773 | (1,474) | ||||||||
Total deferred provision (benefit) | 55,372 | 72,776 | (9,714) | ||||||||
Provision for income tax expense | $ 103,660 | $ 19,392 | $ 53,174 | $ 203,525 | $ 127,310 | $ 55,189 | $ (30,664) | $ 121,481 | $ 379,751 | $ 273,316 | $ 165,464 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Loan reserves | $ 300,538 | $ 356,296 |
Stock-based compensation plans | 10,174 | 10,914 |
Deferred revenue | 1,318 | 1,441 |
Operating loss carryovers | 394 | 83 |
Accrued expenses not currently deductible | 14,307 | 13,139 |
Net unrealized losses | 0 | 9,047 |
Unrecorded tax benefits | 11,016 | 6,997 |
Other | 1,097 | 1,003 |
Total deferred tax assets | 338,844 | 398,920 |
Deferred tax liabilities: | ||
Fixed assets | 10,131 | 11,098 |
Acquired intangible assets | 8,710 | 7,767 |
Market value adjustments on student loans, investments and derivatives | 33 | 5,651 |
Net unrealized gains | 6,459 | 0 |
Federal deferred for state receivable | 1,921 | 7,456 |
Student loan premiums and discounts, net | 12,396 | 11,336 |
Other | 363 | 307 |
Total deferred tax liabilities | 40,013 | 43,615 |
Net deferred tax assets | $ 298,831 | $ 355,305 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 63,134 | $ 53,509 | $ 52,159 |
Increases resulting from tax positions taken during a prior period | 1,496 | 12,723 | 12,333 |
Decreases resulting from tax positions taken during a prior period | (1,481) | (817) | (851) |
Increases resulting from tax positions taken during the current period | 20,743 | 7,815 | 4,572 |
Decreases related to settlements with taxing authorities | (3,682) | (148) | (8,670) |
Increases related to settlements with taxing authorities | 96 | 0 | 0 |
Reductions related to the lapse of statute of limitations | (4,978) | (9,948) | (6,034) |
Unrecognized tax benefits at end of year | $ 75,328 | $ 63,134 | $ 53,509 |
Parent Only Statements - Balanc
Parent Only Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | |||||
Cash and cash equivalents | $ 4,334,603 | $ 4,455,292 | $ 5,563,877 | ||
Income taxes receivable, net | 239,578 | 374,706 | |||
Tax indemnification receivable | 8,047 | 18,492 | |||
Other assets | 26,351 | 19,533 | |||
Total assets | 29,221,899 | 30,770,423 | |||
Liabilities | |||||
Long-term borrowings | 5,930,990 | 5,189,217 | |||
Other liabilities | 313,074 | 352,332 | |||
Total liabilities | 27,072,188 | 28,207,588 | |||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | |||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 432.0 million and 456.7 million shares issued, respectively | 86,403 | 91,346 | |||
Additional paid-in capital | 1,074,384 | 1,331,247 | |||
Accumulated other comprehensive loss (net of tax benefit of $(5,707) and $(10,908), respectively) | (17,897) | (34,200) | |||
Retained earnings | 2,817,134 | 1,722,365 | 1,850,512 | ||
Total SLM Corporation stockholders’ equity before treasury stock | 4,211,094 | 3,361,828 | |||
Less: Common stock held in treasury at cost: 153.1 million and 81.4 million shares, respectively | (2,061,383) | (798,993) | |||
Total equity | 2,149,711 | 2,562,835 | |||
Total liabilities and equity | 29,221,899 | 30,770,423 | |||
Series B Preferred Stock | |||||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | |||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 432.0 million and 456.7 million shares issued, respectively | $ 68,000 | ||||
Parent Company | |||||
Assets | |||||
Cash and cash equivalents | 570,726 | 539,074 | $ 153,508 | $ 191,776 | |
Total investments in subsidiaries (primarily Sallie Mae Bank) | 2,527,780 | 2,689,027 | |||
Income taxes receivable, net | 0 | 1,835 | |||
Tax indemnification receivable | 8,047 | 18,492 | |||
Due from subsidiaries, net | 105,667 | 47,357 | |||
Other assets | 3,361 | 2,457 | |||
Total assets | 3,215,581 | 3,298,242 | |||
Liabilities | |||||
Long-term borrowings | 986,138 | 692,879 | |||
Income taxes payable, net | 34,822 | 0 | |||
Payable due to Navient | 101 | 8,531 | |||
Other liabilities | 44,809 | 33,997 | |||
Total liabilities | 1,065,870 | 735,407 | |||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | |||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 432.0 million and 456.7 million shares issued, respectively | 86,403 | 91,346 | |||
Additional paid-in capital | 1,074,384 | 1,331,247 | |||
Accumulated other comprehensive loss (net of tax benefit of $(5,707) and $(10,908), respectively) | (17,897) | (34,200) | |||
Retained earnings | 2,817,134 | 1,722,365 | |||
Total SLM Corporation stockholders’ equity before treasury stock | 4,211,094 | 3,361,828 | |||
Less: Common stock held in treasury at cost: 153.1 million and 81.4 million shares, respectively | (2,061,383) | (798,993) | |||
Total equity | 2,149,711 | 2,562,835 | |||
Total liabilities and equity | 3,215,581 | 3,298,242 | |||
Parent Company | Series B Preferred Stock | |||||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | |||||
Preferred stock issued | $ 251,070 | $ 251,070 |
Parent Only Statements - Bala_2
Parent Only Statements - Balance Sheets Parentheticals (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | ||||
Preferred stock, par value/stated value (in dollars per share) | $ 0.20 | $ 0.20 | ||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 | ||
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 | ||
Common stock, shares issued (in shares) | 432,000,000 | 456,700,000 | ||
Accumulated other comprehensive income, tax | $ 5,707 | $ (10,908) | ||
Common stock held in treasury (In shares) | 153,100,000 | 81,400,000 | ||
Series B Preferred Stock | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Preferred stock, par value/stated value (in dollars per share) | $ 100 | $ 100 | ||
Common stock, par value (in dollars per share) | $ 45 | |||
Common stock, shares authorized (in shares) | 2,000,000 | |||
Common stock, shares issued (in shares) | 1,489,304 | |||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Preferred stock, par value/stated value (in dollars per share) | $ 0.20 | $ 0.20 | ||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 | ||
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 | ||
Common stock, shares issued (in shares) | 432,000,000 | 456,700,000 | ||
Accumulated other comprehensive income, tax | $ 5,707 | $ (10,908) | ||
Common stock held in treasury (In shares) | 153,100,000 | 81,400,000 | ||
Parent Company | Series B Preferred Stock | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Preferred stock, par value/stated value (in dollars per share) | $ 100 | $ 100 | ||
Preferred stock, shares issued (in shares) | 2,500,000 | 2,500,000 |
Parent Only Statements - Statem
Parent Only Statements - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | $ 1,776,844 | $ 2,021,660 | $ 2,331,032 | ||||||||
Interest expense | 382,078 | 541,667 | 707,717 | ||||||||
Net interest income | $ 367,350 | $ 357,518 | $ 338,784 | $ 331,114 | $ 366,537 | $ 364,567 | $ 348,775 | $ 400,116 | 1,394,766 | 1,479,993 | 1,623,315 |
Non-interest income (loss) | 632,449 | 331,449 | 48,927 | ||||||||
Non-interest expenses | 519,908 | 564,303 | 574,253 | ||||||||
Income tax expense (benefit) | 103,660 | 19,392 | 53,174 | 203,525 | 127,310 | 55,189 | (30,664) | 121,481 | 379,751 | 273,316 | 165,464 |
Net income | 1,160,513 | 880,690 | 578,276 | ||||||||
Preferred stock dividends | 1,177 | 1,166 | 1,192 | 1,201 | 1,734 | 2,058 | 2,478 | 3,464 | 4,736 | 9,734 | 16,837 |
Net income attributable to SLM Corporation common stock | $ 305,088 | $ 71,674 | $ 139,009 | $ 640,006 | $ 430,966 | $ 168,970 | $ (87,689) | $ 358,709 | 1,155,777 | 870,956 | 561,439 |
Parent Company | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | 392 | 452 | 2,663 | ||||||||
Interest expense | 35,208 | 14,896 | 11,060 | ||||||||
Net interest income | (34,816) | (14,444) | (8,397) | ||||||||
Non-interest income (loss) | (13,078) | 2,820 | (10,856) | ||||||||
Non-interest expenses | 54,352 | 57,945 | 39,423 | ||||||||
Loss before income tax benefit and equity in net income from subsidiaries | (102,246) | (69,569) | (58,676) | ||||||||
Income tax expense (benefit) | 8,477 | (11,235) | (25,260) | ||||||||
Equity in net income from subsidiaries (primarily Sallie Mae Bank) | 1,271,236 | 939,024 | 611,692 | ||||||||
Net income | 1,160,513 | 880,690 | 578,276 | ||||||||
Preferred stock dividends | 4,736 | 9,734 | 16,837 | ||||||||
Net income attributable to SLM Corporation common stock | $ 1,155,777 | $ 870,956 | $ 561,439 |
Parent Only Statements - Stat_2
Parent Only Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 1,160,513 | $ 880,690 | $ 578,276 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Reduction of tax indemnification receivable | 10,445 | 9,066 | 11,649 |
Amortization of unsecured debt upfront fees | 2,415 | 2,976 | 1,117 |
Gain on sale of Upromise subsidiary, net | 0 | (11,331) | 0 |
Increase in other assets | (123,268) | (50,454) | (3,091) |
Increase (decrease) in income taxes payable, net | 72,191 | (45,611) | (30,191) |
Increase (decrease) in other liabilities | 2,801 | 80,785 | 5,386 |
Total adjustments | (1,210,035) | (1,063,359) | (593,917) |
Total net cash used in operating activities | (49,522) | (182,669) | (15,641) |
Cash flows from investing activities: | |||
Proceeds from the sale of Upromise subsidiary, net | 0 | 16,922 | 0 |
Total net cash provided by (used in) investing activities | 2,604,673 | 947,330 | (2,306,714) |
Cash flows from financing activities: | |||
Unsecured debt issued | 492,135 | 495,000 | 0 |
Unsecured debt repaid | (202,784) | 0 | 0 |
Repurchase of Series B Preferred Stock | 0 | (68,055) | 0 |
Common stock dividends paid | (60,462) | (46,351) | (51,114) |
Common stock repurchased | (1,530,683) | (558,167) | (167,201) |
Net cash (used in) provided by financing activities | (2,619,516) | (1,875,712) | 5,361,220 |
Cash and cash equivalents at beginning of year | 4,455,292 | 5,563,877 | |
Cash and cash equivalents at end of year | 4,334,603 | 4,455,292 | 5,563,877 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 1,160,513 | 880,690 | 578,276 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Undistributed earnings of subsidiaries | (1,271,236) | (939,024) | (611,692) |
Dividends received from Sallie Mae Bank | 1,444,500 | 579,400 | 254,000 |
Reduction of tax indemnification receivable | 10,445 | 9,066 | 11,649 |
Amortization of unsecured debt upfront fees | 2,663 | 1,029 | 811 |
Loss on early extinguishment of unsecured debt | 2,784 | 0 | 0 |
Gain on sale of Upromise subsidiary, net | 0 | (11,331) | 0 |
Decrease in investment in subsidiaries, net | 34,935 | 53,698 | 2,611 |
(Increase) decrease in due from subsidiaries, net | (58,310) | (4,813) | 6,254 |
Increase in other assets | (16,964) | (10,504) | (12,999) |
Increase (decrease) in income taxes payable, net | 36,657 | (13,292) | (25,814) |
Decrease in payable due to entity that is a subsidiary of Navient | (8,430) | (533) | (416) |
Increase (decrease) in other liabilities | 2,165 | 12,874 | (5,796) |
Total adjustments | 179,209 | (323,430) | (381,392) |
Total net cash used in operating activities | 1,339,722 | 557,260 | 196,884 |
Cash flows from investing activities: | |||
Proceeds from the sale of Upromise subsidiary, net | 0 | 16,922 | 0 |
Total net cash provided by (used in) investing activities | 0 | 16,922 | 0 |
Cash flows from financing activities: | |||
Issuance costs for collateralized borrowings and unsecured debt offering | (1,540) | (1,309) | 0 |
Unsecured debt issued | 492,135 | 495,000 | 0 |
Unsecured debt repaid | (202,784) | 0 | 0 |
Repurchase of Series B Preferred Stock | 0 | (68,055) | 0 |
Common stock dividends paid | (60,462) | (46,351) | (51,114) |
Preferred stock dividends paid | (4,736) | (9,734) | (16,837) |
Common stock repurchased | (1,530,683) | (558,167) | (167,201) |
Net cash (used in) provided by financing activities | (1,308,070) | (188,616) | (235,152) |
Net (decrease) increase in cash and cash equivalents | 31,652 | 385,566 | (38,268) |
Cash and cash equivalents at beginning of year | 539,074 | 153,508 | 191,776 |
Cash and cash equivalents at end of year | $ 570,726 | $ 539,074 | $ 153,508 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net interest income | $ 367,350 | $ 357,518 | $ 338,784 | $ 331,114 | $ 366,537 | $ 364,567 | $ 348,775 | $ 400,116 | $ 1,394,766 | $ 1,479,993 | $ 1,623,315 |
Less: provisions for credit losses | (15,309) | 138,442 | 69,677 | (225,767) | (316,372) | (3,640) | 351,887 | 61,258 | (32,957) | 93,133 | 354,249 |
Net interest income after provisions for credit losses | 382,659 | 219,076 | 269,107 | 556,881 | 682,909 | 368,207 | (3,112) | 338,858 | 1,427,723 | 1,386,860 | 1,269,066 |
Gains on sales of loans, net | 145,535 | (10) | 3,679 | 399,111 | (247) | (4) | (369) | 238,935 | 548,315 | 238,315 | 0 |
Gains (losses) on derivative and hedging activities, net | (17) | 44 | 89 | 28 | 136 | (15) | 3,751 | 45,672 | 144 | 49,544 | 17,825 |
Other income | 7,243 | 13,879 | 48,580 | 14,288 | 1,043 | 9,646 | 25,412 | 7,487 | 83,990 | 43,590 | 31,102 |
Total operating expenses | 125,495 | 140,649 | 128,010 | 124,499 | 121,743 | 127,490 | 141,557 | 147,298 | 518,653 | 538,088 | 574,253 |
Restructuring expenses | 0 | 108 | 70 | 1,077 | 2,088 | 24,127 | 0 | 0 | 1,255 | 26,215 | 0 |
Income tax expense (benefit) | 103,660 | 19,392 | 53,174 | 203,525 | 127,310 | 55,189 | (30,664) | 121,481 | 379,751 | 273,316 | 165,464 |
Net income | 306,265 | 72,840 | 140,201 | 641,207 | 432,700 | 171,028 | (85,211) | 362,173 | 1,160,513 | 880,690 | 578,276 |
Preferred stock dividends | 1,177 | 1,166 | 1,192 | 1,201 | 1,734 | 2,058 | 2,478 | 3,464 | 4,736 | 9,734 | 16,837 |
Net income (loss) attributable to SLM Corporation common stock | 305,088 | 71,674 | 139,009 | 640,006 | 430,966 | 168,970 | (87,689) | 358,709 | 1,155,777 | 870,956 | 561,439 |
Net income attributable to SLM Corporation common stock | $ 305,088 | $ 71,674 | $ 139,009 | $ 640,006 | $ 430,966 | $ 168,970 | $ (87,689) | $ 358,709 | $ 1,155,777 | $ 870,956 | $ 561,439 |
Basic earnings per common share (in usd per share) | $ 1.06 | $ 0.24 | $ 0.45 | $ 1.77 | $ 1.15 | $ 0.45 | $ (0.23) | $ 0.88 | $ 3.67 | $ 2.27 | $ 1.31 |
Diluted earnings per common share (in usd per share) | 1.04 | 0.24 | 0.44 | 1.75 | 1.13 | 0.45 | (0.23) | 0.87 | 3.61 | 2.25 | 1.30 |
Declared dividends per common share (in usd per share) | $ 0.11 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0 | $ 0.06 | $ 0.03 | $ 0.20 | $ 0.12 | $ 0.12 |